6 Things Frugal Baby Boomers Are Buying in 2024
Born between 1946 and 1964, baby boomers make up just over 20% of the population and hold about 52% of the total wealth in the U.S., reports Statista. Still, as boomers transition into retirement, they need to be smart with their spending habits and the purchases they make.
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Here’s what boomers are buying in 2024.
Also see frugal habits that might not pay off for boomers in retirement.
Real Estate
As boomers retire and become empty nesters, they often downsize to smaller homes. Many buy ground-floor condominiums and houses to avoid climbing stairs as they age in place.
With the sale proceeds from their larger homes, along with pensions and other investments, boomers have more than enough capital to pay a monthly homeowners association fee in exchange for having their lawns mowed, properties landscaped and snow shoveled from their walkways and driveways. Many seniors opt to socialize at a community swimming pool rather than having to maintain their own.
Other retirees buy second homes in retirement destinations and travel less during the year or relocate closer to family. Some boomers decide to sell their primary residences and move into their vacation homes, while others with modest vacation homes upgrade to larger houses in the area more suitable for year-round living.
Read More: 10 Things Frugal People Always Buy at Yard Sales To Save Money
Groceries vs. Ordering Out
Baby boomers are buying more food at grocery stores rather than ordering takeout or delivery.
“I refuse to do DoorDash,” said Laura Gebers, a 63-year-old healthcare manager from Denver. “When I go to a restaurant, I want to experience the ambiance of a beautiful restaurant and be waited on by a server. Otherwise, I prepare meals that I bring to work to stretch my dollar.”
Older shoppers are also more likely to buy groceries from brick-and-mortar stores than online. According to Statista, 61% of those ages 55 to 65 shop exclusively in stores, while just 31% of those between 18 and 24 do so.
Precious Metals
Precious metals can be safe investments in times of high inflation and uncertain financial times, returning more value than stocks and bonds.
When Gebers lost $300,000 from her stock investments and $45,000 from her pension due to increased interest rates, she sought the advice of successful financial contrarians who recommended she invest in precious metals.
“While I haven’t made all of my money back, I’ve seen a positive return in a short period,” Gebers said, “and it keeps increasing.”
Coupon Memberships
Coupon promotions are a great way to save money on purchases. Coupon companies alert members by email about new deals in retail stores, restaurants and entertainment venues. Discounts can save members 50% off or more — a significant value when used to buy merchandise for the whole family.
BOGO meals at restaurants can save families a significant amount of money on their bills or bar tabs over a period of time. Companies such as Groupon offer special rates on services such as hair salons, spas, educational courses and entertainment.
Stocks and Mutual Funds
According to Bentley University, data from a FeeX analysis revealed that 30% of users between the ages of 60 and 65 invested almost all of their assets in stocks. CNN Money further reported that 52% of those users invested 70% or more of their savings in stocks.
While stocks can be unstable as a short-term investment, they can provide excellent returns as a long-term strategy. Baby boomers have accumulated over $90 trillion in wealth, according to Yahoo Finance, largely from holding onto their assets for decades.
Long-Term Care Insurance
As boomers approach their eighties, they might need to move into assisted living facilities or pay for in-home care that isn’t always covered by Medicaid or Medicare.
According to the American Association for Long-Term Care Insurance, 10 million Americans invest in long-term insurance policies. Therefore, investing in a long-term healthcare plan early, say at age 40 or 50, enables the policyholder to get a better rate than if the person enrolled at age 80.
A long-term healthcare plan also helps take the financial strain and physical burden off family members and helps maximize their inheritance.
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This article originally appeared on GOBankingRates.com: 6 Things Frugal Baby Boomers Are Buying in 2024
