Gray matters

Americans age 50 and older are becoming an increasingly crucial part of the economy, notes a new report from AARP expected out Tuesday morning.

Why it matters: The AARP, of course, has always said that older people matter, but it really has a point in these times.

• A wave of aging baby boomers, on top of the sharp fall in immigration, is poised to radically reshape the U.S. economy.

Zoom in: Americans age 50 and older generated $12.5 trillion in economic activity in the U.S. in 2024, per the group's Longevity Economy Outlook report — that's up more than $2 trillion since 2018.

• Workers age 65 and older now make up 8% of the labor force, more than double their share (3%) 25 years ago.

Stunning stat: By 2050, 1 in 4 Americans will be over 65.

Between the lines: Older Americans are sitting on an enormous mountain of wealth — and as they retire, they're spending that down and passing on some of that cash to younger generations.

The intrigue: Some market analysts believe that's propping up the U.S. economy.

• This is a "G-shaped" economy, for generational, in which older folks provide "financial support to their younger adult children and grandchildren," economist Ed Yardeni wrote.

Yes, but: Many older Americans are struggling with rising costs and have little saved for retirement.

Zoom out: Still, as the affordability crisis crushes young adults, many of their elders are more insulated.

• "This explains the resilience of consumer spending and suggests that it can continue," he said.