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Monday, April 15, 2013 2:29 AM

Demographics in Pictures: Peak Earning (and Peak Spending Years)

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Here is a nice theme from reader "BC" regarding peak earning years that I merged into a single chart.

Peak Earning Years

click on chart for sharper image

The above chart shows what is happening to employment in age groups 35-44 (blue), 45-54 (red), and the combined effect 35-54 (green).

Those in age group 35-54 are in their peak earning and spending years. This is the period where people upgrade houses and have a need for larger cars as family sizes grow. Between 34-44 family sizes reach peak. Expenses hit maximum when kids graduate from high school and head to college.

Telling Statistics

  1. Employment in age group 35-44 peaked just prior to the 2001 recession.
  2. Employment in age group 45-54 peaked right at the start of the 2007 recession.
  3. Employment in age group 34-54 peaked just after the housing bubble burst.

Earning power for boomers has peaked. Yet as a whole, boomers are unprepared for retirement.
The effect on spending and GDP should not be hard to figure out.

Mike "Mish" Shedlock

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