Retirees are living better, spending more – and redefining what it means to grow older.
It only takes a glance at your TV, your Facebook feed or your favourite news site to see how much society has changed. Retirement, once a quiet stage of life, is now front and centre – celebrated, marketed, and lived to the fullest.
And nowhere is that more obvious than in the way today’s retirees are spending.
Retirement has never looked so good
According to the Retirement Living Council’s latest census, moving into a two-bedroom independent living unit for over 55s costs, on average, just 59% of the median house price in the same postcode. That’s freeing up a huge amount of equity for retirees – and they’re putting it to good use.
In fact, Australians aged 70 to 74 are now outspending younger Australians aged 18 to 34. Those in the 65 to 69 bracket are also spending more than any other group under 45.
That means Baby Boomers are not only more cashed-up – they’re actively choosing to spend their wealth on lifestyle, travel, health, and experiences.
Boomers vs Millennials: Who really spends more?
Research from WPP Australia & New Zealand shows Australians over 50 are leading the pack across nearly every spending category:
- Travel
- Cars
- Entertainment
- Health
- Online shopping
“When it comes to buying consumer goods online, over 50s spend about $40 billion more than Millennials and Gen X each year,” the research states.
So, while younger Australians might dominate social media, it’s the Boomers who are powering the economy.
Why the shift is only just beginning
Thanks to rising superannuation balances, strong home equity, and better financial planning, older Australians are entering retirement in stronger financial shape than ever.