Retired Americans (55+) are largely driving the United States’ economy through recreational spending, according to a new analysis from The Wall Street Journal. With the stocks, retirement savings, and real estate assets that make up their 70 percent share of America’s household wealth, members of the Baby Boomer generation are retiring in style, with lux gated communities facilitating endless concerts, golf outings, and expensive meals.

Americans 55 and up only controlled 50 percent of the nation’s wealth as of 1989. In the decades that followed, they have only increased their wealth compared to their children’s.

 

Learn more about the 2024 Vault Conference and secure your ticket today!

And they are bringing their money to new retirement spots, such as Georgetown, Texas, which is home to the Sun City retirement community. Georgetown has had the highest population growth rate in the US over the last three years: 11 percent in 2021, 14 percent in 2022, and 11 percent in 2023.

While many of the people pouring into towns like Georgetown are young tech workers, the median age of the city is 44, and 27 percent are 65 and older.

According to Moody’s Analytics, Arizona, Florida, Georgia, North Carolina, South Carolina, and Texas gained half a million new American residents over the age of 54 since 2021. Nearly half were from California, Illinois, and New York.

In many cases, these older couples sold their homes at a profit and bought southern homes for cheap. States like Texas have no income tax and the city of Georgetown puts a limit on property taxes for those 65 or older, allowing them to save money on larger properties.


Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.

Add comment