Older adults (aged 55 or older) comprise 22.3% of the total population in 2004. This translates into more than 65 million people--a market too large to ignore. Older adults make up an even larger 35% of all households in the U.S. By 2010, the Baby Boomer generation will move into the age group, making the older-adult segment the fastest growing segment in the US population.

In some industries, the relative importance of the older-adult segment is obvious. They create a good market for some goods and services, such as health care, but are a less attractive target for others, such as goods and services for children.

For other industries, however, the relative importance of older adults is more difficult to determine. Understanding the demographics and spending patterns of older adults can help businesses better assess the importance of this segment and develop strategies for increasing the number of customers drawn from this group. This is particularly relevant today as the Baby Boomer generation begins moving into the older-adult age group. Not only will the Boomers boost the number of older adults by a sizable amount, they will also change the character of the generation, providing increased opportunities for many businesses to find new customers among this segment.

This report examines the demographics and consumer lifestyle of adults aged 55 or older. Specifically, this report covers:

Demographics: population and household numbers, gender ratio, race and Hispanic origin, marital status, presence of children in the household, homeownership, employment, and income

Spending patterns: Expenditures on housing, transportation, food and beverages at home and away from home, health care, entertainment, and other expenditures (including insurance and pensions, cash contributions, education, personal care products and services), tobacco products, finance charges, legal and accounting fees, and funeral and cemetery expenses)