Forget everything you thought you knew about who is splashing the cash in Australia.
The latest data is in, and it shows a surprising trend emerging among Australians.
If you are over 50, you might be at the centre of an economic shift that’s reshaping spending habits across the nation.
Busting the stereotypes
For years, we have all heard the clichés. Young professionals are supposedly blowing their pay packets on smashed avo and inner-city rent, while retirees are pinching pennies and hunting for the best deal at the local RSL.
But the numbers tell a very different story. According to research from the Commonwealth Bank, the Australian Bureau of Statistics (ABS), and a major report by communications giant WPP, Australians over 50 are not only spending more—they are leading the charge in almost every major category.
Consider this: Australians over 50 now account for a whopping 64 per cent of new car purchases and 55 per cent of all travel spending.
And when it comes to online shopping, they are outspending Millennials and Generation X by a staggering $40 billion each year.
That is not just a few extra lattes—it is a seismic shift in who is driving Australia’s consumer economy.
The hard numbers: Who is really spending?
Let’s dig into the data. The Commonwealth Bank’s Cost of Living Report breaks down monthly per capita spending by age, and the results are eye-opening.
Australians aged 65 to 69—those most likely to be recent retirees—are now spending more each month than any age group under 45.
Even those aged 70 to 74 are outspending everyone under 35.
This is not just a blip. It is a trend that has been building for over a decade.
Compared to 2003-04, Australians aged 65 and over have increased their non-housing consumption by 27.5 per cent, while those aged 55 to 64 have seen a 19.2 per cent jump.
Meanwhile, younger households are actually spending less than their counterparts did 20 years ago.
Why are Baby Boomers spending more?
So, what is behind this Baby Boomer spending boom? There are a few key factors at play:
- Superannuation success: Thanks to decades of compulsory superannuation contributions, today’s retirees are entering their golden years with more financial firepower than any previous generation.
- Housing wealth: Many Baby Boomers have benefited from Australia’s property boom. Downsizing, moving to more affordable areas, or selling investment properties has unlocked billions in spending power.
- Post-pandemic mindset: After years of lockdowns and restrictions, there is a new ‘seize the day’ attitude. Travel, dining out, and entertainment are back on the agenda, and Baby Boomers are leading the charge.
- Changing attitudes: Today’s over-50s are redefining what it means to age. They are active, adventurous, and keen to enjoy the fruits of their labour—whether that is a new car, a trip overseas, or the latest tech gadget.
But not all Baby Boomers are rolling in it
Of course, it is important to remember that these are averages. While some Baby Boomers are living it up, others are doing it tough.
In fact, 63.3 per cent of Australians of pension age receive some form of the Age Pension, with 42.9 per cent on the full pension and 20.4 per cent on a part pension.
The wealth gap within the Baby Boomer generation is real, and not everyone is reaping the rewards of rising house prices or big superannuation balances.
What does this mean for younger generations?
For younger Australians, the picture is less rosy.
Despite years of record-low interest rates, inflation-adjusted household spending for those under 50 has barely budged—or even gone backwards.
The dream of financial independence and a comfortable lifestyle is getting harder to achieve, and the gap between generations is widening.
This is not just an economic issue—it is a social and political challenge. When one group is thriving while others struggle, it can breed resentment and division.
Policymakers will need to grapple with how to ensure prosperity is shared more evenly across the generations.
The takeaway: Baby Boomers are redefining retirement—and spending
The old image of the frugal retiree is well and truly out of date. Today’s over-50s are active, engaged, and spending more than ever before.
They are not just enjoying their retirement—they are shaping the future of Australia’s economy.
So, whether you are a Baby Boomer making the most of your hard-earned savings, or a younger Australian wondering what it all means for your future, one thing is clear: things aren’t what they used to be—and Baby Boomers are proving it.
What do you make of these trends? Have you noticed changes in your own spending or that of those around you? Do you think the current generation of retirees is simply enjoying the fruits of their hard work, or does it raise broader questions about fairness and future affordability?
We’d love to hear your thoughts—share your perspective in the comments below.
Also read: Australia’s empty nesters stay put despite growing downsizing pressures
