The Longevity Economy® Outlook

The Longevity Economy® Outlook reports are a series of data analyses from AARP that explore the wide-ranging impacts of the 50-plus population in the U.S. The 2026 report indicates that adults in this group accounted for $12.5 trillion in annual economic activity in 2024, and their contribution is projected to grow through 2060. 

Key Findings & Takeaways

As people live longer and healthier lives, they are contributing to communities and fueling economic growth well past the traditional retirement age. The contributions of people 50-plus benefit society and Americans of all ages as they generate trillions of dollars of U.S. GDP, account for a major share of consumer spending, support tens of millions of jobs, generate significant tax revenue, and provide substantial unpaid caregiving, volunteering, and charitable giving value—impacts projected to grow through 2060.

Our latest report found:

• In 2024, adults age 50-plus generated 43% of U.S. GDP—$12.5 trillion—enough to be the world’s third-largest economy. 
  
  
• Unpaid contributions are economically essential: adults 50-plus provided the equivalent of $1.2 trillion in unpaid care and volunteering in 2024.
  
  
• The 50-plus population is not just growing; it is also aging rapidly. This is shifting the cohort toward later-life stages while reshaping work and spending.
  
  
• Nearly 57 million people age 50-plus are in the labor force, underscoring how critical older workers have become as growth among younger workers lags.
  
  
• Population aging is a national trend, the pace of which varies across the 50 states, with highly uneven economic effects.

The takeaway? A longevity-powered future will reward those already building for it. The question is not whether this shift is underway, but whether we can adapt fast enough to harness its economic potential. Key areas of action include:

• Make longer working lives productive, not precarious.
• Treat age-ready housing as essential infrastructure.
• Create products that help people live better as they age.
• Invest more for an aging society.
• Recognize unpaid and charitable contributions as essential drivers of the economy.
• Build a functioning care economy.

It’s time for industries, employers, governments, and communities to plan with longevity in mind.
 

Go Deeper: Key Insights

Demographic Outlook: How the 50-plus Population is Changing

The 50-plus population is growing quickly, adding more than one million per year, and in 2031 it will begin welcoming millennials. But it isn’t just growing; its composition is shifting rapidly toward those 65 and older. Significantly more older adults are staying economically active longer, and growth in the labor force among people 50-plus is outpacing that of younger workers.

Economic Contribution: The Scale of Older Adults’ Impact

If the 50-plus population was its own economy, it would rank as the world’s third largest after the U.S. and China. Through their spending, work, and tax contributions, older adults support nearly half (46%) of U.S. jobs across all ages and sectors and are a major source of government revenue, paying nearly 60% of federal income taxes.

Consumer Spending: Micro View of the 50-plus Consumer

Longer lives are reshaping how older adults spend in critical sectors: Healthcare underpins long-term growth in the economy among people 50-plus, driven by spending among people 75-plus; Housing makes up over 1/5 of consumption (more for people 65-plus) with demand set to continue amid rising preference for "aging in place"; Leisure is staging a brisk comeback, powered not only by the young but also notably by those people 75-plus; and Technology spending, which includes communications and electronics is rising especially quickly.

Unpaid Contributions: Economic Value Beyond the Market

In 2024, adults 50-plus provided the equivalent of $1.2 trillion in unpaid care and volunteering. Households headed by someone 50-plus gave $111 billion in charitable contributions, accounting for 70% of all charitable donations in the U.S. Plus, college students received significant financial support from households age 50 and over, who contributed $13.1 billion in 2024, around 72% of all such support.

State Variation: How Aging is Shaping Each Economy Differently

By 2060 all states but Alaska will have older populations than the U.S. average today (36.3% of people over age 50). Plus, the pace of aging matters too: states with young but fast-aging populations will face compressed transition periods, with less time to adjust to an older population. Workforce and industry differences also matter: these variations can affect how much economic value states could realize from longevity. Lastly, population flows affect each state’s experience with aging. Outcomes ultimately depend on how effectively states manage these shifts and integrate older populations.

Methodology & Data

The methodology was developed by Economist Enterprise using a dynamic forecasting model from Regional Economic Models, Inc. (REMI PI+) and other supplementary modeling, and includes additional analysis related to unpaid non-market activities. The model enables a holistic estimation of the economic impact of adults 50-plus, taking into account not only its spending but also other inputs such as its workforce and tax contributions. These inputs drive complex interactions, creating demand and output across industries, and rippling through the economy. The model collates these effects to determine the 50-plus population’s overall contribution to GDP, employment, wages and salaries, and taxes, and runs simulations forecasting these impacts through the coming decades.

Last reviewed May 2026.

For media inquiries, contact media@aarp.org.

For more information on AARP’s longevity work, contact AARP Thought Leadership at thoughtleadership@aarp.org.