Forget the tired old stereotypes of retirees pinching pennies and living off early bird specials—Australia’s over-60s are officially the nation’s biggest spenders, and the numbers are in to prove it!

If you’ve ever been told that the younger generations are the ones splashing the cash, it’s time to set the record straight.

Boomers are not just keeping up; they’re leading the charge when it comes to spending, and it’s changing the way we think about retirement, wealth, and what it means to enjoy life after 60.


For years, the image of the frugal retiree has dominated the public imagination. But new data from the Commonwealth Bank and the Australian Bureau of Statistics (ABS) has well and truly busted that myth.

According to research conducted for communications and advertising giant WPP, Aussies over 50 now account for a whopping 64 per cent of new car purchases and 55 per cent of all travel spending.

That’s right—when it comes to hitting the open road or jetting off on a well-deserved holiday, it’s the over-50s leading the way.


And it doesn’t stop there. The WPP report found that over-50s outspend millennials in almost every category you can think of: entertainment, cars, health, travel, and more.

When it comes to online shopping, the over-50s are spending about $40 billion more each year than millennials and Gen X combined.

Let’s get down to brass tacks. The Commonwealth Bank’s Cost of Living Report breaks down monthly per capita spending by age group, and the results are eye-opening.

Excluding housing costs, Aussies aged 65 to 69 are now spending more per month than any age group under 45. Even those aged 70 to 74 are outspending everyone under 35.

This is a far cry from the old image of retirees living on a shoestring. Today’s retirees have both the means and the desire to enjoy their golden years—and they’re not shy about opening their wallets to do it.

There are a few key reasons behind this shift:

Superannuation Success: Thanks to decades of compulsory superannuation, many retirees are entering their later years with more financial security than previous generations. This nest egg gives them the freedom to spend on things they enjoy, from travel to dining out to spoiling the grandkids.

Housing Wealth: Australia’s property market has been kind to many Boomers. Downsizing, moving to more affordable areas, or selling investment properties has unlocked a significant chunk of the nation’s $11 trillion in housing wealth, giving retirees extra cash to spend.

A New Attitude Post-Pandemic: After years of lockdowns and restrictions, there’s a growing sense among older Aussies that it’s time to seize the day. Whether it’s booking that dream holiday or finally buying the car they’ve always wanted, many are embracing a 'you only live once' mentality.

Changing Cultural Norms: Today’s over-60s are more active, adventurous, and engaged than ever before. They’re not content to fade into the background—they want to make the most of every moment, and that often means spending a little extra to enjoy life.

While it might seem like this spending surge is a recent development, the trend has actually been building for over a decade.

Compared to 2003-04, household consumption (excluding housing) for those aged 65 and over has grown by 27.5 per cent.

For those aged 55 to 64, it’s up by 19.2 per cent. Meanwhile, younger households are spending less than their counterparts did 20 years ago.

This isn’t just a blip—it’s a fundamental shift in how Australians are living and spending in retirement.

Of course, it’s important to remember that these figures are averages, and there’s a lot of variation within the over-60s age group.

While some are enjoying the fruits of a lifetime of work and investment, others are getting by on the age pension.

In fact, 63.3 per cent of Australians of pension age receive some form of pension, with 42.9 per cent on a full pension and 20.4 per cent on a part pension.

So, while the headlines might talk about cashed-up Boomers, the reality is more nuanced. There are plenty of over-60s who are still watching their budgets carefully.

The fact that older Australians are now the biggest spenders has big implications for the economy, politics, and society as a whole.

On the one hand, it’s great news for businesses catering to the over-60s, from travel companies to car dealerships to online retailers.

On the other, it highlights the growing gap between generations, with younger Aussies finding it harder to achieve the same financial security as their parents and grandparents.

As policymakers grapple with these challenges, one thing is clear: the days of underestimating the spending power of Boomers are well and truly over.
Have you noticed this trend in your own life? Do you feel more comfortable spending in retirement, or are you still watching every dollar? And what are you splurging on these days—travel, family, hobbies, or something else entirely? Share your stories in the comments below.

Read more: This is not how I want to see the end of my life’: The shocking truth about pensioners’ housing struggles