The baby boomers are the 76 million people who are currently between the ages of 53 and 71 years and who significantly impact the U.S. economy. This group is not only increasing the demand for certain services and goods, but they are also boosting the economy in a way no other generation has the ability to do because of their spending habits.
From the research it has been seen that 35% of the baby boomers have the household income over $100,000. Because of the continued household incomes of baby boomers, they control the 70% of the nation’s disposable income. This group is mainly famous because of the informed financial decisions and to be active participants in the local and global communities. As the baby boomers invest and consume therefore the money controlled by these individuals continues to flow back into the economy. Report shows that during the first quarter of 2017, American 55 and older accounted for 41.6% of consumer spending up from 33.5% in 2007. According to the research the people over the 50 age group will continue to dominate U.S. spending for the next 10 years.
These have made the major contribution to the medical economy. With the demand for healthcare services on the rise as they age, Baby boomers are expected to increase annual spending on wellness-based services from approximately $200 million to $1 trillion. Results shows that average healthy 65-year old couple will spend about $250,000 for premiums, cost sharing provisions and costs that are associated with medical parts A, B, and D during retirement. They spend the additional amount on different medical facilities. But in the coming year by 2030 the amount is expected to rise from $259.8 billion to $287.5 billion by 2050.
Therefore 1031 exchange is used as the best option by the baby boomers as they have the maximum spending capacity and these are the person who takes interest in the investment of properties.