Published: March 7, 2023
The U.S. population, like those of many developed countries, is aging. According to the latest Census figures, a major shift occurred over the past two decades in which the share of the population under 50 declined, especially among those who are considered to be of prime working age. Even the youngest baby boomers are nearing retirement age while the oldest are almost 80. And while millennials have come of age and now outnumber boomers, this isn't enough to prevent the average age in the U.S. from shifting from 35.4 in 2000 to 38.8 today. What could these trends mean for the economy and markets in the years to come?
Demographic trends matter to investors both at a macroeconomic level and when creating personal financial plans. By their nature, these trends tell us about the long run trajectory of the country and economy. Thus, they are an important counterbalance to the short-term issues that investors, market economists, and financial news outlets often focus on.
-Christopher Cannon, MSAPM, CFP®, RICP®, AIF®