I. The Silver Tsunami
The “silver tsunami” refers to the large wave of Baby Boomers moving into retirement and the rise in the number of older households. That demographic shift is increasingly reshaping America’s consumer economy, as older households account for a growing share of income and spending power.
The scale of that shift becomes clearer when viewed against the broader expansion of the household sector. The US had 137.1 million households in 2025, more than twice as many as in the late 1960s (chart). That expanding household base has created a much larger pool of consumers earning and spending income.
Just as important is the change in the age composition of those households. The number headed by someone 65 or older has climbed to 41.9 million, far above any other age group (chart). Most younger cohorts have grown much more slowly. That's because by 2029, everyone in the large Baby Boomer cohort will be 65 years old or older, and they are living longer.
As a result, the 65+ group now accounts for 30.6% of all US households, up from roughly one-fifth around the turn of the century (chart). Nearly one in three households is now headed by a senior.
