The U.S. economy faces both challenges and advantages due to its ageing population. While an older demographic signifies a shrinking labor force and higher social care costs, it also underpins economic stability through spending and job creation, particularly in healthcare. This sector alone accounted for nearly all private-sector job growth in 2025. Baby boomers, the wealthiest generation, hold 73% of national wealth and drive consumer demand, crucial for avoiding recession. However, this economic reliance on a narrow spender group elevates vulnerability to fluctuations in asset prices and inflation.
Economist Mark Zandi emphasizes that older, wealthy consumers significantly bolster the economy, with 59% of consumer spending coming from the top 20% earners. This spending is essential as boomers own major shares in corporate equities and AI investments, acting as key financial sources. Yet, the declining savings rate points to a potential risk, as their financial security hinges on steady asset values.
Additionally, an older population spurs healthcare job growth, accelerated by declining net immigration. Over 30 million Americans will turn 65 by 2030, complicating workforce dynamics and slowing economic growth over time. To counteract the aging workforce’s impact, Zandi suggests that immigration reforms and AI advancements could offer gradual solutions, ensuring continued economic equilibrium.