SOURCE: BMO Harris Bank

BMO Harris Bank

September 05, 2013 10:00 ET

Spending by Seniors to Rise Faster Than Everyone Else -- BMO Economics

CHICAGO, IL--(Marketwired - Sep 5, 2013) - The aging population won't necessarily have a major negative impact on the nation's economy, according to BMO Senior Economist Sal Guatieri. While the latest data from BMO Economics shows that seniors tend to spend significantly less than middle-aged people, any concerns about the negative ramifications on the economy are largely countered by the fact that the next generation of seniors is expected to increase spending by a whopping 230 percent over the next two decades -- more than twice as fast as everyone else (15 to 64).

In a little over a decade seniors are expected to become a powerful spending force, accounting for one-in-five shopping dollars versus one-in-seven today. Furthermore, the senior population is expected to grow 69 percent by 2033.

"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. "An upward shift in the spending of seniors has already occurred. Between 2001 and 2011 the average expenditure of individuals 65 and over jumped 41 percent, fifteen percentage points faster than the general population. Seniors spent at a faster rate on nearly everything, including food, clothing and entertainment, with the latter almost doubling."

About BMO Harris Bank

BMO Harris Bank provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are provided by BMO Harris Bank N.A. and are subject to bank and credit approval. BMO Harris Bank® is a trade name used by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and approximately $555 billion in assets (as of April 30, 2013).

Contact Information

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    Tiffany Smith
    (312) 461-7815