U.S. Has a Record Number of Grandparents Who Are Younger, Better Off Financially & Considerably More Generous to Their Grandc...
July 26 2011 - 10:00AM
Business Wire
The number of grandparents in the United States has hit a record
high and is growing. In general, grandparents are younger,
financially comfortable and bestowing a good deal of their money on
grandchildren, according to a new report by the MetLife Mature
Market Institute.
According to, “The MetLife Report on American Grandparents: New
Insights for a New Generation of Grandparents,” produced in
conjunction with noted demographer Peter Francese, there are 65
million grandparents in the U.S., an increase from 40 million in
1980; more than one in every four adults is a grandparent.
Grandparents today, for the most part, are working age Baby Boomers
between 45 and 64 years old.
Contrary to the stereotypical “grandma” and “grandpa” of
yesteryear, today’s grandparents are far from dependent. In fact,
they are more likely to be sharing their resources with their
children and grandchildren. Many of them are working age and most
are heading households. While the real income of those ages 55 and
over has risen, that of their children has declined. Grandparents
are more likely than ever before to be college graduates, while
college graduation rates have remained the same among younger
men.
“The number of multi-generational households has increased, due
in part to the recession,” said Sandra Timmermann, Ed.D., director
of the MetLife Mature Market Institute. “This trend, coupled with
the increased financial instability of today’s younger families,
has huge business implications. The fact that grandparents are
spending a great deal of money on infant food and equipment,
children’s clothing, toys, elementary and secondary school tuition,
and financial, mortgage and insurance products, represents a change
in buying habits and may change the way marketers and advertisers
focus their efforts.”
The MetLife Report estimates that by 2020 there will be 80
million grandparents who will represent one in every three adults.
While the majority of today’s grandparents are women (124
grandmothers for every 100 grandfathers), the gap is expected to
close because older men are now healthier and living longer.
Additionally, the study found:
- Households headed by those ages 55 and
older are now spending $2.43 billion annually on primary and
secondary school tuition, about 2.5 times the amount of $853
million in 1999.
- According to the U.S. Census Bureau,
the average age of new grandmothers is 50; it is 54 for new
grandfathers.
- In 2010, there were 39.8 million
grandparent-headed households, one of every three households in the
U.S. Only one in five grandparents lives alone.
- An estimated 4.5 million
grandparent-headed households include one or more of their
grandchildren; 11% of grandparent households have at least one
grandchild and 60% of multi-generational households have two or
more grandchildren.
- Incomes of households headed by those
ages 55 or older rose by $491 from 2000 to 2009, while those in the
25-34 and 35-44 age groups saw their incomes decline. 45- to
54-year-olds had just a $42 increase.
- A rise in spending on auto insurance by
those ages 55 and older, coupled with a decline in such spending
among younger people, suggests that grandparents may be buying
insurance and/or cars for their children or grandchildren.
- One in five grandparents is
African-American, Hispanic or Asian.
Data for The MetLife Report on American Grandparents was
gathered from the 2010 U.S. Census and compared with previous
Census figures. Other information came from the Centers for Disease
Control and Prevention and the Department of Labor’s Bureau of
Labor Statistics.
“The MetLife Report on American Grandparents: New Insights for a
New Generation of Grandparents,” can be downloaded from
www.MatureMarketInstitute.com. It can also be ordered through
Contact Us on the MetLife Mature Market Institute Web site, or by
writing to: MetLife Mature Market Institute, 57 Greens Farms Road,
Westport, CT 06880 or MatureMarketInstitute@metlife.com.
Peter Francese
Peter Francese was founder of American Demographics magazine and
speaks and writes frequently on consumer trends. Francese is also a
frequent contributor to Advertising Age magazine. He has authored
several books, articles and special reports on how to better
understand consumer markets. His most recent book, with co-author
Lorraine Stuart Merrill, Communities & Consequences, is on the
future of New Hampshire. www.francese.com
The MetLife Mature Market Institute®
The MetLife Mature Market Institute is MetLife’s center of
expertise in aging, longevity and the generations and is a
recognized thought leader by business, the media, opinion leaders
and the public. The Institute’s groundbreaking research, insights,
strategic partnerships and consumer education expand the knowledge
and choices for those in, approaching or working with the mature
market.
The Institute supports MetLife’s long-standing commitment to
identifying emerging issues and innovative solutions for the
challenges of life. MetLife, Inc. is a leading global provider of
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Middle East. For more information, please visit:
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