Younger baby-boomers boost spending on booze, survey says

Younger members of New Zealand's baby-boomer generation are helping to keep the liquor industry afloat, an advertising survey says.

Marketers at Senioragency hired researchers Roy Morgan to conduct the survey, which distinguishes between older and younger members of the boomer demographic - people aged 45-64 years.

Older boomers are spending more overall and younger boomers - more of whom still have mortgages - are spending more on alcohol.

The survey, which spoke to 750 people, found overall buying power had increased significantly in the past two years.

Many boomers were asset-rich and able to make purchases at a time when retail prices were low.

Senioragency says people aged 45-64 years represent 31 per cent of the total population and 36 per cent of the population are older than 50.

Senioragency partner Chris Schultz said that two years ago younger demographics Generation X and Y were the dominant spenders.

Now boomers spent 16 per cent more per person than the average New Zealander.

The older ones were asset-rich and 87 per cent were mortgage free by the time they were 60.

Baby-boomers bought 43 per cent of all TVs compared with 23 per cent two years ago. People over 50 accounted for 44 per cent of all overseas holidays, Roy Morgan found.

People at the younger end of the demographic were finding it tough juggling finances, the survey found. But while "late boomers" may not be travelling as much and have cut back on lifestyle purchases, they are spending more on alcohol.

They had increased spending by 25 per cent when all other generational groups had decreased spending. They now account for 39 per cent of all alcohol sales.

Jonathan Dodd of research firm Synovate said many boomers had been hard hit and had lost money in the finance company collapses and that had diminished spending power.