Household spending peaks at around age 45 for the average American. This is according to Census data analysed by JP Morgan Asset Management.
As you can see in the chart below, spending in most categories begin to decline after age 45.
Future spending needs and habits are important considerations for people planning for retirement.
From an economic and policy standpoint, it’s critically important to understand evolving spending behaviour especially as demographics shift.
The most notable of demographic shifts is the ageing of America’s baby boomers.
As America’s population ages, expect the older end to spend less and less. And don’t forget, consumption accounts for around 70% of GDP.