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For anyone with small children, this may sound familiar. Often it’s the grandparents who buy the must-have toy, cover the holiday home hire or insist on paying for the meal out. This latest festive season is likely a reminder of their willingness to shell out. But the over-55s have been a persistently overlooked consumer base. 

This cohort accounts for roughly half of all global consumer spending but attracts only a fraction of advertising budgets, according to various marketing bodies. In the US, the over-50 age group is projected to rise further in influence to account for 61 cents in every dollar of total consumer spending by 2050, according to a study by the American group AARP.

The dismissal of this purchasing power is baffling, not least because decision makers at large companies often sit in the same age bracket. In the UK, the median age of top executives is 56 and non-executive directors is 61, according to headhunter Spencer Stuart. In the US, the trend is similar. Yet the consumers who most look and behave just like them are not a priority.

The thinking has traditionally been to attract the youth so they’ll stick around. That idea made sense when younger generations had rising incomes and habits that were slow to change. These days they are more distrustful, experimental and, crucially, poorer. Many are delaying traditional life milestones such as getting married, buying a home and having children, or shunning them altogether.

Older people tend to have more disposable income and stickier tastes — from gadgets to beauty products and holidays. They may not chase every new thing, but when they trust a brand they tend to return to it and recommend it to others, says Jackie Cooper, who founded Edelman’s Longevity Lab. Surveys show many are willing to pay more for products from brands they believe in. “They will not only buy but advocate for them . . . even if a brand makes mistakes,” Cooper says. 

A recent trip to a department store beauty counter illustrated the generational difference. An adviser told me that the youngest cohort came to the concession having read reviews and watched social media videos and were keen to collect free samples well before handing over any cash. Older customers, however, were more inclined to listen to in-shop experts and, importantly, buy. 

These consumers are not technologically challenged. In fact, it’s the opposite. People who are entering into older age have adopted smartphones, streaming and social media in mid-life. The 55-64 cohort is among the fastest growing groups on platforms such as YouTube and TikTok, according to Ampere. Influencers in this age bracket now span wellness, finance, fashion and food, with audiences that extend far beyond their peers.

While companies such as Burberry and Estee Lauder have attempted to bridge the disconnect, why is it so tricky for the vast majority of corporations? 

Part of the issue is that the over-55s are not a single market. How you may behave between 50 and 72 years old when you’re at peak health may not be the case later when you’re 80 years old or older. Behaviour varies widely not just by health but by levels of wealth and self-perception. Academics say that life stage and how old people feel are more predictive of consumer behaviour than chronology alone. 

My 63-year-old aunt who treks in Patagonia does not recognise herself in the adverts for cruises and senior housing relentlessly served to her. She’s not alone. Cooper says consumer surveys show the bulk of over-55s say their favourite retail brand no longer understands them.

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Across the corporate world diversity of all kinds is being deprioritised as the “war on woke” takes hold. Older models who briefly appeared on fashion runways and in ad campaigns have largely disappeared. Age seemingly remains one of the few forms of exclusion that can be defended in the interests of business.

But in ageing societies — by 2050, the number of adults over 65 is projected to double, reaching 1.6bn people — a lot of discretionary spending power will sit with those who have seemingly already been written off. Many are still working and caring for parents and grandchildren. Others are time rich and more financially comfortable. All are more economically significant than business acknowledges.

The image of later life as a period when grannies sit knitting in rocking chairs is far removed from reality. This generation is reaching older age in better health, with longer lifespans and a greater presence — online and off — than any before it. Ignoring them is a strategic error.

anjli.raval@ft.com