Spending Among 65+ Surging Forward

Spending Among 65+ Surging

Amid all the bad news out there, a recent Gallup survey shows spending by "well-off" folks and people 65+ surging.

From May 2009 to May 2010, average daily spending by folks 65+ was $44 in May 2009 and $64 in May 2010 (45% increase). The average daily spending by those who make over $90,000 a year rose from $110 to $145 during the same time frame.

The basic Gallup information about this poll can be found at:

http://www.gallup.com/poll/139619/frugality-fatigue-upper-income-spending-surges.aspx

But, if you are in the retirement and/or senior housing industry and want a little chuckle, read the "I'm-scratching-my-head" analysis of the 65+ spending increase by economist Catherine Rampell in a New York Times blog.

http://economix.blogs.nytimes.com/2010/06/10/whos-spending-again-the-rich-and-the-old/?scp=6&sq=gallup&st=cse

To Catherine, everybody aged 65+ is "elderly." In my world people don't hit elderly until about 80. People 65+ are generally out having fun, dining out, taking classes, at the health club, cruising the Caribbean or out buying a new computer to email their grandchildren. I know 65+ folks who are sailing, starting a new company or running 5K races.

But Catherine (however brilliant her economics background is) is obviously a youngster that I bet does not operate in a world of folks 50+ who, by the way, as a group control 77% of all financial assets. You can see lovely young Catherine at her twitter page:

http://twitter.com/crampell

While these assets may have shrunk by some percentage, their slice of the pie continues to dominate the under age 50 group.

But, really, Catherine...health care spending? Like, Depends?