Baby boomers are poised to reshape large parts of the U.S. economy in the coming years as their enormous wealth and changing needs redirect spending toward health care, housing, financial services and premium experiences, according to a new study from Moody’s Ratings. Boomers, the generation born between 1946 and 1964, have accumulated more wealth than any age cohort in the nation, accounting for about 52 percent of total U.S. household net worth. In terms of housing alone, boomers own roughly 41 percent of all U.S. real estate assets, according to Realtor.com data, translating to an equivalent of nearly $19 trillion worth of property.
This massive wealth is largely a reflection of decades of homeownership, which many boomers acquired in the 1970s and 1980s, when housing was cheaper than it is now, considering historically high borrowing costs and still-rising home prices. But the concentration of wealth within this generation is even more striking. The wealthiest 10 percent of boomer households hold roughly 71 percent of the generation’s aggregate wealth, according to Moody’s.
Meanwhile, the median household wealth of boomers aged 65 and older stood at around $372,000 in 2022, compared with roughly $250,000 for the Silent Generation at the same age, in inflation-adjusted dollars. The Silent Generation refers to people born approximately between 1928 and 1945. That wealth is expected to create winners and losers across the country—and reshape the U.S. economy in the shape of the "silver cohort," as researchers call it.
America is aging, as boomers grow older and birth rates are in decline. The same is happening in much of the world: by 2060, according to Census Bureau data, about one-fifth of the global population will be at least 65 years old—double the 2025 share. The graying of the country—especially that of the wealthiest generation in the nation—will increase national demand and spending for the kind of services and goods that aging boomers will need and want.
Moody’s expects affluent older Americans to support demand for private banking, wealth management, cruise travel, luxury hospitality, premium food and beverages and health-related products such as hearing aids, supplements and elective procedures. Boomers’ widespread use of technology could also benefit companies offering telehealth, e-commerce, streaming and digital financial advice. At the same time, mass-market businesses could face a tougher environment.
Moody’s said midmarket retail, casual dining and standardized consumer products could experience weaker demand growth, while spending on apparel and vehicles typically declines after age 55. The result is what the ratings agency describes as a "barbell" effect, with lucrative opportunities at the premium end and in industries directly linked to aging, but greater pressure on businesses occupying the middle of the market. One of the biggest beneficiaries is likely to be health care.
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