They have mortgages, cars, kids, credit cards, vacations, RV's, etc. What you're missing is most retirees spend less than they did when they were working. Presumably they have a good deal less income. As Baby Boomers retire(and the oldest are now 76) that's taking spending out of the economy. The following generation, the Gen-Xers, are a much smaller generation so there won't be as much spending as the Baby Boomers. The Millennials will rev the economy back up. The U.S. is fortunate to have a lot more Millennials than other countrys. China and Japan for example have much older populations that are aging out and their populations are collapsing. That will greatly change how the world operates in the future.