Baby-boomers are loaded. Why are they so stingy?

Baby-boomers have been born between 1946 and 1964—and are the luckiest technology in historical past. A lot of the cohort, which numbers 270m throughout the wealthy world, haven’t fought wars. Some acquired to see the Beatles stay. They grew up throughout sturdy financial progress. Not all are wealthy, however in mixture they’ve amassed nice wealth, owing to a mixture of falling rates of interest, declining housebuilding and powerful earnings. American baby-boomers, who make up 20% of the nation’s inhabitants, personal 52% of its web wealth, value $76trn (see chart 1).

Now the technology is shifting into retirement, what are they going to do with their cash? The query issues for extra than simply suppliers of cruises and golf golf equipment. Since they’ve deep pockets, boomers’ spending selections will exert an enormous affect on international financial progress, inflation and rates of interest. And it seems boomers are remarkably stingy—not simply in America however throughout the wealthy world. They aren’t spending their wealth, however making an attempt to protect and even improve it. The difficulty for the economic system within the 2020s and 2030s won’t be why boomers are spending a lot, as many had anticipated. Will probably be why they’re spending so little.