Baby boomers’ spending habits in 2025

Like any generation, there’s general stereotypes and narratives - some have truth to them, others not so much. 

When it comes to baby boomer characteristics, our data confirms that they’re well-off. 3 in 10 are high earners, and three quarters have cash or savings as a financial buffer, more than any younger generation. 

But that’s not the whole story when it comes to their spending habits. They're also a very diverse group. Sitting anywhere between their 60s and 70s, many are still in employment and have children at home, while others are retired and living a very different lifestyle.

So, how is this generation different when it comes to finances? How does being retired impact their spending? And how are baby boomers driving consumer trends? 

Let’s have a look.

Baby boomer spending habits to know

1. They’re impulsive when it comes to vacations
2. They’re thrifty individuals 
3. They want to keep active
4. They love a gadget
5. They are unique in how they discover brands
6. They enjoy events
7. They’re making more digital purchases

1. They’re impulsive when it comes to vacations

Baby boomers are pretty unique in their approach to travel, often booking trips on a whim rather than saving for them in advance. In fact, they’re 159% more likely than the average consumer to do this, increasing to 211% more likely among baby boomers who are retired. 

And despite what you might think, cruises aren’t the top choice for them. Gen Z are actually more inclined to take cruise vacations than baby boomers, who are all about sightseeing trips. So, think organized tours and cultural experiences. 

For brands looking to engage with baby boomers in the travel space, recommendations and previous vacations are standout purchase influencers, but it’s also about cost. Baby boomers want to feel like they’re getting a good deal, even if they’re making an impulse purchase, so deals from travel websites or agencies are a key thing they’ll be looking for when they decide where to go on vacation. 

Another thing brands should take note of here is that for baby boomers, it’s all about experience, or value. If they’re going to invest in something, they want it to make their life better, and we see that coming through in other financial habits.

2. They’re thrifty individuals 

Baby boomers might like to book vacations spontaneously, but they’re also a price-conscious generation. So while they’re ready to spend, they’re careful and want to get the right deal. 

When we look at the top items baby boomers have purchased in the last six months, vacations are top of the agenda alongside essentials like car insurance, and new pairs of glasses. These individuals are clearly not a frivolous bunch, if they’re going to make a purchase, they either want it to be special or offer value. 

This leads them to regularly engage with loyalty schemes and look out for the best deals. This frugality extends to their preferences too, as they’re more likely than other groups to opt for less expensive, store-brand products over pricier, well-known brands.

To effectively reach this budget-savvy demographic, brands should consider tailoring their marketing strategies to appeal to baby boomers’ value-driven mindset. Whether that’s offering loyalty rewards, competitive pricing, or emphasizing the quality and cost-effectiveness of products. 

3. They want to keep active

Baby boomers are a health-conscious bunch, and they’re willing to spend money on products and services that support their well-being - viewing them as investments in their health.

For starters, over a fifth of baby boomers own a smartwatch or smart wristband, with over 4 in 5 of this group saying they primarily use it for health and fitness tracking - that’s more than any other generation.

They’re also open to the idea of spending money on tech that will improve their health, with almost a quarter saying they trust it to do so. These consumers clearly see gadgets as not just tech novelties, but essential tools for maintaining their health. 

In terms of activities, swimming, running, and gym workouts are baby boomers’ top ways to get moving, with over a quarter saying they take part in these forms of exercise. 

In the US, baby boomers are just as likely as Gen X and millennials, and more likely than Gen Z, to do weekly workout sessions at home. This presents a valuable opportunity for brands to create products that cater to boomers’ fitness routines and preferences, whether it’s online fitness subscriptions, home gym equipment, or virtual personal training services. 

4. They love a gadget

Baby boomers aren’t just interested in buying fitness gadgets, they’re inclined to spend their money on other devices too. The younger generations might be all on #BookTok, but baby boomers are 58% more likely than any other generation to own an e-reader. 

Baby boomers are also faster to adopt smart tech than people might think - more own smart TVs and smart speakers than younger generations, and over a quarter have 5 or more devices. 

The good news for brands is that almost half of baby boomers say they’re loyal to the brands they like, more so than younger generations. Once a purchase is made, their loyalty is likely to lead them to explore additional products or services offered by the same brand, creating opportunities for brands to deepen engagement and increase sales. 

When considering which tech brand to buy from, baby boomers are distinct for considering user-friendliness, value for money, and reliability. So, brands should keep these qualities in mind when marketing products to this generation. 

5. They are unique in how they discover brands

Baby boomers are unique when it comes to brand discovery - they’re more likely than younger generations to discover brands and products through more traditional means like ads in newspapers, stories or articles in newspapers, and emails or letters from companies. Another key player here is ads seen on TV. 

While you’d expect younger groups to be the ones most likely to watch TV streaming ads, this isn’t the case. 32% of baby boomers with a Netflix account have a version that shows ads, compared to just 9% of Gen Z. 

TV ads are a key brand discovery channel for baby boomers with 45% saying they discover new brands through ads seen on TV, they’re also 39% more likely than the average consumer to discover a brand through these ads. 

Brands should look to diversify their ad spend, and focus more on streaming platforms where baby boomers are increasingly active, but not forget that with these guys - traditional marketing is still a big hit.

6. They enjoy events

First up, baby boomers are enthusiastic sports fans, whether they’re attending them in-person or following the action on TV. Among baby boomers who follow sports, around a fifth attend professional games and matches - 19% more than younger consumers. Similarly to vacations, this suggests a strong willingness from baby boomers to invest in experiences that hold personal value. 

Three fifths follow the sporting action on TV or online, making them a key demographic for sports subscriptions bundles, which could cater to their viewing preferences.

Baby boomers are also a prime audience for food, seasonal, and music festivals, with almost a third in the US and UK planning on attending the same amount or more events this year than in 2024. It’s all about the experience here too - 75% say they’re unlikely to livestream a music festival that they were unable to attend, suggesting that it’s all about being at the event. 

Brands looking to connect with baby boomers should be focusing on designing marketing strategies that align with their inclination to spend on real-world events. This group are looking for value when they spend - prioritizing enjoyable experiences that justify their investment. 

7. They’re making more digital purchases

Compared to 2020, we’ve seen a significant shift in the number of baby boomers who are purchasing subscriptions to movie/TV services, premium web services, news services, and mobile apps. 

Despite having more disposable income than younger generations, baby boomers aren’t willing to just hand over their cash for any reason. They’re looking for subscriptions that offer tangible benefits, high-quality content, and cost-effectiveness. 

For brands, it’s looking like it’s time to adjust marketing strategies and see this trend as an opportunity to engage with baby boomers more directly through digital products and services. 

The bottom line

When we look at baby boomers, they’re a pretty unique bunch. Even though this generation holds more wealth than younger generations, they’re pretty careful when it comes to parting with their money. These consumers are looking for value in return - whether that’s the joy of a once-in-a-lifetime trip, the ability to keep up with their favorite sports team, or being able to track their health and fitness. 

When brands are looking to engage with baby boomers, they should recognize their value-driven mindset and deliver products and services that meet their needs but also their desire for meaningful experiences.