Older adult spending hits all-time high amid leisure activity growth

gettyimagesbank

People aged 65 and older are driving consumption growth, especially in the 65-74 age group, which accounts for nearly 60 percent of older adult spending, government data showed Sunday.

Previously, older adult spending was largely on health care. However, recent data showed that leisure, dining and cultural activities are emerging as key areas of expenditure for the age group, indicating a growing focus on quality of life rather than basic needs alone.

More than 60 percent of older adult spending came from private expenditures, up 14.9 percent from the previous year.

According to the Ministry of Data and Statistics, formerly Statistics Korea, total consumption by older adults reached 243.8 trillion won ($169 billion) in 2023, up 12 percent from 2022.

The all-time high figure accounted for 16.7 percent of the national consumption total, also the largest to date.

By comparison, spending among the working-age population in the 15-64 age group, constituting over 70 percent of total consumption, climbed just 6.3 percent.

The 65-and-older age group is spending far more than they earn.

In 2023, its earned income came to 64.6 trillion won, meaning a significant part of spending came from personal assets.

Notably, the 65-74 age group — also known as the “young old” — accounted for 59.3 percent of older adult spending. The data showed that almost 70 percent of this age group's personal assets were drawn for private spending.

“A growing number of old people are emerging as a new consumer group that will bolster demand for age-specific products and services. Health care, welfare and financial services providers are expected to roll out new growth strategies to tailor to their needs,” an industry watcher said.