A recent Saga report evidences how British baby-boomers are helping to keep the economy afloat. This iconic generation, the post-war babies that grew up to revolutionise popular culture, makes up just over a third of the UK’s population, but punches above its weight when it comes to spending its wealth.
The report, undertaken by the Centre for Economic and Business Research (CEBR) on Saga’s behalf, suggests that if the boomers’ spending had kept pace with that of the under-50s, the UK’s GDP would have been depressed by more than 4% by now, and by nearly 7% by 2018. The over-50s accounted for more than 47% of UK household expenditure in 2012 and this is on an upward trajectory – making them an increasingly important consumer group.
The boomers’ spending represents over half of the UK’s household expenditure on health, recreation and culture, alcohol, restaurants and hotels. Their spending on alcohol and tobacco, clothing and footwear, and within the restaurant and hotel sectors has risen by over 8% in the past decade.
Meanwhile, other sectors such as household goods & services, miscellaneous goods & services, health, transport, recreation culture and communications have also seen the rise in boomer spending by more than 6%.