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Baby Boomers on the Move

 

 Baby boomers on the move

Exhibit 6-9: Number of women with income by age group (1993 -2013)

Number of females with income by age group.png

Source: U.S. Census Bureau, Annual Social and Economic Supplements, Equity Communications


Exhibit 6-10: Number of males with income by age group (1993 -2013)

Number of males with income by age group.png

Source: U.S. Census Bureau, Annual Social and Economic Supplements, Equity Communications

Comments

The income landscape of the USA has gradually shifted to the second half of the lifecycle. The trend has accelerated in the last few years.

For instance, the number of men ages 55 to 64 with income increased 88.5 percent from 9.6 million in 1993 to 18.1 million in 2013. Similarly, the total income earned by men ages 55 to 64 increased 116.5 percent from $515 billion in 1993 to $1.12 trillion in 2013 in inflation-adjusted dollars.

Moving in the opposite direction, the number of men ages 35 to 44 with income decreased 7.5 percent from 20 million in 1993 to 18.5 million in 2013. Similarly, the total income earned by men ages 35 to 44 decreased 3.5 percent from $1.18 trillion in 1993 to $1.14 trillion in 2013.

Let us now look at how the distribution of income among the different age groups has changed since 1993.

“The first half of the lifecycle has lost earning power for both men and women. The ages 55 to 64 for both sexes have grabbed a bigger share of earning power”

Exhibit 6-11: Distribution of income by age group – 1993 to 2013 (Both sexes)

Distribution of income by age group


Exhibit 6-12: Massive changes in the income landscape of the USA (1993-2013)

Changes in the US Income Landscape by life-cycle.png

Source: U.S. Census Bureau, Annual Social and Economic Supplements, Equity Communications

Exhibit 6-13: 2014 Income snapshot for individuals by age

Income snapshot for individuals by age

“Because of the drastic shift in the income landscape, it might be best for the jewelry industry to develop increased consumption of jewelry in the second half of the lifecycle. Follow the money!”

Comments

  • The ages 24-37 most likely to purchase marriage jewelry than any other group - due to life stage (first marriage) 
  • The ages 24-37 spend more than twice the average on gifts of jewelry - Mother's Day gifts, Valentine's Day gifts, courtship gifts, and wedding related gifts)


However, because of the drastic shift in the income landscape, it might be best for the jewelry industry to
develop increased consumption of jewelry in the second half of the lifecycle. Follow the money!

Greater promotion of jewelry for milestone love events (anniversaries) is the best way to offset the declining
buying power of the core ages for marriages jewelry consumption.

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