A senior economist with the Bank of Montreal (BMO) is not overly concerned that the wave of Baby Boomers on the cusp of becoming senior citizens will curtail spending when they retire, thus stymieing Canada’s recovering economy.
The economist, Sal Guatieri, when analyzing BMO’s latest data, found that although seniors spend less than middle-aged people, the sheer number of individuals becoming senior citizens in the next few years will outweigh any concerns pertaining to a dip in spending that hinders the rebounding economy.
BMO found that the incoming generation of seniors plan on increasing spending by 230 percent over the next two decades, a rate that is twice as fast as the rest of society.
The vast amount of Baby Boomers approaching retirement will serve as a profitable demographic to be tapped by retirement and insurance professionals, retailers, restaurateurs and hoteliers and others: BMO found that in a little over a decade, one-in-five shopping dollars, compared to one-in-seven today will be controlled by senior citizens.
With the senior population in Canada expected to grow by 69 percent by 2033, these retirees and pre retirees will be the force that keeps the country’s economic recovery moving forward.
“Future retirees will be the wealthiest ever, and are expected to live and work longer, travel more, and be more active than the current generation of seniors,” said Guatieri.