Senior spending to propel Canadian economy

A senior economist with the Bank of Montreal (BMO) is not overly concerned that the wave of Baby Boomers on the cusp of becoming senior citizens will curtail spending when they retire, thus stymieing Canada’s recovering economy.

The economist, Sal Guatieri, when analyzing BMO’s latest data, found that although seniors spend less than middle-aged people, the sheer number of individuals becoming senior citizens in the next few years will outweigh any concerns pertaining to a dip in spending that hinders the rebounding economy.

BMO found that the incoming generation of seniors plan on increasing spending by 230 percent over the next two decades, a rate that is twice as fast as the rest of society.