Phoenix3 Holdings says companies underestimate older Americans' spending power
SPY•Phoenix3 Holdings said companies risk missing growth opportunities by underestimating older consumers’ spending power, particularly in travel and restaurants. Americans over 50 generated $12.5 trillion in economic activity in 2024, about 43% of U.S. GDP, according to AARP.
1. Older consumers’ spending
Phoenix3 Holdings said companies should treat older consumers as a primary growth segment rather than assume their demand is declining. AARP data cited in the brief put Americans over 50’s 2024 economic activity at $12.5 trillion, up from $8.3 trillion in 2018, and projected it would reach $24 trillion by 2060. Cited consumer research found boomers lead discretionary spending allocations for travel at 41% and restaurants at 36%.
