baby-boomers are the richest generation ever to have lived—but they do not spend like it. Instead, as we, the elderly are squirrelling away money, motivated by ever-longer retirements, the risk that they will need to pay for old-age care, the inevitable uncertainty about how long they will survive and the desire to pass on assets to their children .
That matters because retirees are so numerous and rich that their behaviour can drive capital markets. America’s boomers, defined as those born between 1946 and 1964, have a net worth of $76trn, or over $1m per person. For decades their saving for retirement has helped drive down interest rates, which in the long run must move to equilibrate savings and investment globally.
This article appeared in the Leaders section of the print edition under the headline “Parsimonious pensioners, profligate politicians”