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Yet, when it comes to spending, they are holding tight to their savings and their accumulated wealth.
The big question were looking at isnt why baby boomers arent spending a lot.
Baby boomers lived through the economic calamity of the 1970s and 80s, Hebert said.
So, what are additional drivers behind this attitude andhow is it impacting younger generations?
Rebell added that retirement used to be a much shorter percentage of our lifespan.
Now that were living longer, retirement can last decades longer than it did in the past.
It makes sense to be careful with their cash flow, she continued.
Long-term healthcare is very expensive, and they want to keep that financial safety net.
Many boomers are super savers, Zigmont said.
They have saved every penny they could and getting them to spend more is challenging.
Ive seen boomers with millions yet still cutting coupons and buying from the discount bin.
Long-term care averages $115,000 annually for a single room in a skilled nursing facility.
It is reasonable to worry about covering end-of-life expenses, and some will be unable to cover these costs.
For what, exactly, only time will tell.
Hebert also explained that millennials expecting a huge inheritance are going to be in for a rude awakening.
What Does This Mean for Younger Generations?
This has made the already expensive process of buying a home even more costly, especially for younger buyers.
This trend will continue to exacerbate the wealth gap as homeownership is a significant way to build wealth.
These changes reflectbroader economic and societal shifts.
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