Senior consumers are no longer a niche market — they’ve become a central force in the U.S. economy.
According to a new report from the Bank of America Institute, the share of the U.S. population ages 60 and older increased by almost 10 percentage points between 1995 and 2025, reaching 25%. And the U.S. Census Bureau projects that share will rise another 5 percentage points by 2055, to nearly 30% of the population.
Data shared in the report shows that people ages 65 and older spend around two and a half fewer hours per day working than the 15-and-older population. They devote roughly two additional hours per day to leisure and sports — with television viewing accounting for the largest share of that relaxation time.
Bank of America internal card-spending data reveals how these time differences translate into purchasing patterns.
Households headed by someone 61 to 75, as well as those older than 75, allocate a greater share of their card spending to groceries, while the 61-75 group also spends relatively more on travel, including airlines and lodging.
Meanwhile, restaurants and bars, gasoline, general merchandise and clothing account for smaller shares of older households’ spending, the report added.
Wealth and cost pressures diverge
Many older consumers have considerable capacity to spend.
Households headed by those 55 and older held close to $140 trillion in net worth in the second quarter of 2026 — around three-quarters of the national total — and they saw their net worth rise more than 20% over the past two years amid strong equity markets.
But the report cautions that wealth is not evenly distributed, and healthcare and other cost pressures remain significant for older households on tighter or fixed incomes.
Census research cited in the report found that about 14% of Social Security recipients over 65 rely on it for more than 90% of their income.
Data from the Federal Reserve Bank of New York shows serious credit card delinquencies among Americans 70 and older hit 6.3% in Q2 2026 — their highest level since 2011.
Credit card balances rose by $21 billion in Q2 2026, while total household debt reached $18.8 trillion. Home equity line of credit balances climbed for the 17th straight quarter.
Nuanced recovery in dining and travel
The picture for restaurants and bars is mixed. Households ages 61-75 spend relatively less than the overall population but appear to be narrowing that gap, while those over 75 are not.
The authors of the report also suggest the COVID-19 pandemic may still be weighing on dining-out spending among this older age group.
Airline spending tells a different story. Since the pandemic, both older groups have increased their spending share relative to all households, although they remain below 2019 levels.
For businesses and the broader economy, the takeaway is clear: As older Americans become a larger share of the population, understanding their distinct needs and spending patterns will only grow more relevant.
