(Bloomberg Business) — 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, analyst Andy Barish notes, 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, Barish 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.
“According to our survey, over 80 percent of Boomers plan to keep spending the same … [or] even more on golf equipment and accessories after retirement,” writes Barish. “This bodes particularly well for ELY [Callaway Golf Company], the preferred golf equipment and accessories brand among the Boomers surveyed.”