Baby Boomers and Echo Boomers (those born from 1979 to 1989) will account for more than half of total consumer spending by 2015, according to Visa USA's "How America Spends" report conducted in February and March 2007.
In 2015, Baby Boomers are expected to spend $4.6 trillion and Echo Boomers $2.45 trillion. Currently, Baby Boomers spend $3.8 trillion annually and Echo Boomers $400 billion.
"These two generations are the powerhouses of US consumer spending," said Wayne Best, Visa's chief economist, in a statement. "While Baby Boomers will remain a force even into their golden years, the rate at which Echo Boomers' spending will increase is a testament to their future economic impact."
Nearly half of Echo Boomers described themselves as savers. More than 70% said they were concerned about having enough money for retirement. Retirement savings concerned more than three-quarters of Baby Boomers.
The biggest monthly expense for both groups was housing.
The next biggest expenses for Baby Boomers were medical and dental costs and restaurant dining. Eating out was also the second highest monthly expense for Echo Boomers.
The Visa-commissioned study was conducted by The Segmentation Company division of
Yankelovich Partners.