And it’s not just healthcare, almost half of spending growth in the categories of personal care, housing, food and entertainment will be driven by households headed by someone aged at least 60 between now and 2030.
This according to a report due to be published by McKinsey in early 2016 and reported here in the FT.
A PDF of the article is available here; Middle-class meltdown_ Older Americans reshape the economy – FT
Research from Pew reveals that the share of people aged 65 and over in the upper-income brackets has more than doubled since 1971 to 17 per cent. However, it is sobering to note that it still leaves people in the 65+ age group more likely to be lower income than the other demographics tracked by Pew.
Despite all the demographic certainty and economic power, even the McKinsey report’s author says she’s “surprised had not heard corporate leaders express more interest in this group”.
I like this explanation of inaction by a consultant quoted in the article. He says “[Companies are] seduced by the potential of the millennial, and that plays into their comfort zone as they don’t need to rethink what they’re doing.”