The Wall Street Journal drawing on U.S. Census Bureau data, is reporting that people of retirement age, that is 65 to 74 years old, are spending less than the same age group did 10 years ago. The cuts in spending have not been across the board however, as this age cohort is spending more in a few areas. The most significant area is health care. Other categories where this subset of the population is spending more includes health insurance, drugs, gasoline/motor oil and pets/toys/hobbies.
As the Journal reports, about 36 million Americans will turn 65 over the next decade as the “baby boom” generation begins to retire. A possible consequence of a reduction in spending by retirees is slower domestic economic growth.