Older Americans Now Command 45% of All Consumer Spending

The economy’s center of gravity is turning silver. Americans 55 and older now account for almost half of all consumer spending — a sharp jump from under 40% just six years ago (Moody’s). As this demographic ages, they’ve come to dominate spending, employment growth, and market trends across sectors. But what happens when the pyramid flips?

• The gray economy now holds over 70% of all wealth, boosted by rising home and stock prices — and healthcare hiring is now driving nearly all job growth to serve them.
• Moody’s Analytics’ Mark Zandi notes older Americans are “driving the train, there’s no doubt about it,” with longevity startups emerging to capture this growing market.

The next wave: While this demographic fuels growth today, it’s creating significant structural challenges. Fewer young workers support more retirees, housing markets freeze, and small businesses struggle to find successors. Despite the headwinds, winners are emerging as travel companies like Royal CaribbeanRCL

, AirbnbABNB

, and MarriottMAR

capture premium leisure spending, while healthcare REITs, including WelltowerWELL

, VentasVTR

, and HealthpeakDOC

, profit from aging. The silver wave is a force of nature, but just remember that you can only ride it for so long.