Baby-boomers, born between 1946 and 1964, are often considered to be the luckiest generation in history. With a population of 270 million across the rich world, this cohort experienced significant growth and prosperity during their formative years. Unlike previous generations that had to endure wars and hardships, baby-boomers were able to enjoy many luxuries, such as seeing the Beatles live and experiencing strong economic growth.
As a result of this good fortune, baby-boomers have accumulated significant wealth over the years. In fact, while not all individuals in this generation are wealthy on their own, as a group they have amassed great wealth. Factors that have contributed to this include falling interest rates, declining housebuilding, and strong earnings. In the United States alone, American baby-boomers make up 20% of the population but own 52% of the country’s net wealth, totaling $76 trillion.
Now that they are reaching retirement age, questions arise about what baby-boomers will do with their wealth. This is not just a concern for industries catering to retirees but will also have a significant impact on global economic growth, inflation, and interest rates due to their substantial financial resources. However, surprisingly, it appears that baby-boomers are choosing to be quite frugal with their wealth. Instead of spending it all at once or investing it in high-risk ventures like previous generations may have done before them, these individuals are focused on preserving or increasing their wealth for future generations to come.
This trend is not limited to America but is prevalent across the rich world. As such