Montanans Age 50 Plus Will Fuel State’s Economic Growth For Next 30 Years

New report shows Montana’s 50-plus population creates outsize economic impact; generating $28 billion in economic activity annually.

Montana’s 50 plus population creates an outsize economic impact that will help the state’s economy recover from the pandemic and drive economic growth for the next 30 years, according to new research from AARP.

AARP’s Longevity Economy Outlook® research report details the positive economic impact of Montana’s increasing number of residents over the age of 50. Their contributions to the state’s total GDP will triple from $28 billion in 2018 to $84 billion in 2050.

“People age 50 and older are consumers, workers, business owners, volunteers and family caregivers. They create an economic impact much greater than their proportion of the state’s population,” says Tim Summers, state director of AARP Montana.

Even after accounting for the impact of COVID-19, Montana’s aging population will continue to make economic and social contributions that benefit people of all ages, and the growth of this age group will fuel innovation and new market solutions. The 50-plus cohort will grow from 39% of the population in 2018 to 42% in 2050.

“Future generations of older Montanans are expected to live longer, healthier and more active lives. Demographic changes of such magnitude create a tremendous opportunity for the state of Montana,” Summers says. “Policymakers, business leaders and elected officials must ensure programs and policies are in place to grow this economic engine.”

The report’s key findings include:

• Outsize economic impact: In 2018, people age 50+ represented 39% of Montana’s population, but contributed 46% - or $28 billion – of the state’s total gross domestic product (GDP). Their contribution to GDP is forecast to reach $84 billion in 2050—over 48% of the state’s projected GDP—when people 50-plus will account for 42% of the population. Their contributions to the state’s total GDP will more than triple to $84 billion in 2050.
• Growing tax revenue stream: People age 50+ generated $1.8 billion in state and local taxes in 2018, representing 41% of the state’s total budget. By 2050, that amount will grow to more than $6.1 billion. The purchasing power of Montana’s 50-plus population will generate tax revenue for decades to come. In 2018, the market activities of people 50-plus supported $1.8 billion in state and local taxes (41% of Montana’s total). That figure will more than triple to $6.1 billion by 2050.
• Job creation: The economic activities of people 50+ supported 330,000 jobs in 2018, representing 48% of the total number of jobs in Montana. By 2050, people 50+ will support 354,000 jobs in Montana.
• Total purchasing power: 50-plus households accounted for 60 cents of every dollar spent in Montana in 2018—this will grow to 63 cents (63%) by 2050
• Caregiving: In 2018, Montanans age 50+ contributed 420 hours, on average, per year caring for loved ones, at a value of $2 billion.
• Volunteering: In 2018, Montanans age 50+ were engaged in 101 hours on average per year of volunteer work at a value of $735 million.
  

The report highlights the fact that the Longevity Economy is redefining economic lines in successfully changing the face of the workforce, helping advance technology and breaking through the traditional perceptions of what it means to age.

For more information about The Longevity Economy and state reports visit: www.aarp.org/longevity

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About AARP: AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence and nearly 38 million members, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal fulfillment. AARP also produces the nation's largest circulation publications: AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.

About AARP Montana: For nearly 50 years, AARP has been working right here in big sky country to improve the lives of the 50 plus. As a non-profit organization, AARP Montana advocates for what matters most to families: health security, financial stability and personal fulfillment. By fighting on issues that matter most to Montana families and providing trusted information, we’re helping to empower Montanans to choose how they live as they age. Today, nearly 148,000 strong, AARP Montana is one of the largest membership organizations in the state.  As a nonpartisan organization, AARP does not endorse candidates for public office or make contributions to political action committees, campaigns or candidates. To learn more, visit www.aarp.org/MT or follow @AARPMontana on social media.