While analysts obsess over how the preferences of the millennials could shape market returns as they enter the workforce, Jefferies sets its sights on how the baby boomers – a generation with one foot out the door of the labor market – will alter their spending once they retire.
The boomers aren’t as large a cohort as the millennials by sheer numbers, the Jefferies analysts say, but what they lack in size, they more than make up for in wealth:
Jefferies surveyed 410 Americans who plan to retire within six years. The results indicate that boomers will go out to eat less, but spend more time travelling and golfing. A couple caveats: this survey group isn’t necessarily indicative of the typical Boomer – the household income of roughly $100,000 is above the national average, and Jefferies “skewed the survey male (69 percent) so that we could get more robust answers around golf.”
Still, Jefferies highlighted ClubCorp, Callaway Golf, Royal Caribbean, and Nike – all of which are “buy” rated by analysts at Jefferies – as some of the beneficiaries of boomers’ retirement spending plans.