Forget Gen Z and Millennials — the over-50s ‘Silver Spenders’ are powering investment opportunities, including these stocks

The increasing wealthiness and enhanced spending powerfulness of the over-50s is poised to accelerate a scope of concern opportunities crossed aggregate sectors successful the U.K., according to investors.

Market pros accidental this property radical — dubbed the "Grey Pound" oregon "Silver Spenders" — is gaining greater power implicit its assets. With greater wealthiness and much discretionary income, a larger chunk of this demographic is progressively seen arsenic the caller "idle rich."

Dan Coatsworth, caput of markets astatine AJ Bell, said that the over-50s were an progressively influential demographic wrong the user space.

"Those inactive moving mightiness beryllium good precocious successful their career, paid disconnected their mortgage, and person tons of disposable cash. They mightiness person worked hard for decades and consciousness similar they merit to splash the cash," Coatsworth told CNBC.

"Those successful status mightiness beryllium successful the procreation that received generous defined payment pension schemes and cod a tidy sum to money an extravagant lifestyle," helium added.

Coatsworth said the radical wants to support arsenic overmuch of their wealthiness arsenic they tin from taxation, which means seeking proposal connected tax, investments, and wide fiscal planning.

Alyx Wood, co-founder and main concern serviceman astatine Kernow Asset Management, said determination was a wide subset of winners and losers wrong this cohort.

Day-to-day beingness for "a batch of" them is inactive "quite pugnacious and normal," but determination are others who are "just perfectly nailing it successful presumption of compounding their assets," helium said.

This second wealthier conception is processing an appetite for luxury goods "that they've ne'er had before," arsenic good arsenic for "higher-end" wealthiness absorption and security services.

These customers are progressively seeking retired "content, story, getting involved, a purpose" that extends beyond accepted passive returns, Wood added.

Hiscox.

He highlighted names similar security radical Hiscox and privately-owned wealthiness managers Evelyn Partners arsenic imaginable winners arsenic older consumers crook to definite premium wealthiness absorption and security products.

"The banks are trying to bargain backmost into the wealthiness absorption industry," said Wood, pointing to the reported involvement successful Evelyn Partners from NatWest Group and Barclays arsenic backstage equity owners Permira and Warburg Pincus question to exit. "I expect you'll spot a fewer of those."

Wood, a contrarian banal picker whose hedge money specializes successful U.K. equities, past period outlined a large presumption connected Saga plc astatine the yearly Sohn London concern conference, which helium said was besides partially a wager connected the spot of the "Silver Pound."

He said radical surviving their "Saga years," a notation to the question and security marque that focuses connected the over-50s, volition relationship for astir 60% of each U.K. user spending by 2030.

Saga — which makes up astir 10% of Kernow's portfolio — is simply a "materially undervalued" business, whose stock terms could surge over 400% successful the adjacent fewer years, Wood added.

Wood said that Pets At Home, the London-listed specializer retailer of favored food, toys, and accessories, was different sanction facing near-term pressures that could yet look arsenic a beneficiary of the trend, arsenic older consumers bargain much for their pets and walk little connected their children.

"Experiences and worldly goods volition fertile highly connected their database of places to walk wealth – specified arsenic holidays, bully meals, fancy cars, location renovations, quality products, wellness," Coatsworth said of the cohort. "The database goes on."

Pets At Home.

Coatsworth besides said that the healthcare assemblage was a apt winner, arsenic an ageing colonisation volition mean rising request for medicine and treatment.

"Private attraction homes, status villages and spot investors with aesculapian providers arsenic tenants are among the winners from this trend," Coatsworth told CNBC via email.