Follow The Money: The Over-45 Generation (5/24/2004)

According to a recent report by Mature Marketing & Research, Americans over the age of 45 hold the nation's largest discretionary income and three-quarters of the nation's financial wealth. Read all you want about the coming tsunami of Gen Y spending, the reality is that the "Plus-45" population is the driving force in today's economy &endash; and they're only getting stronger.

The U.S. Census Bureau reports that Americans over the age of 45 account for more than 43% of the population and will comprise roughly half by 2010. The segment consists of two groups, Baby Boomers, who are nearly 78 million strong, and the Mature Market (age 65 or older) that totals 40 million.

As for their spending habits, they vary greatly. The American Association of Retired Persons (AARP) published a study earlier this year that identified housing, transportation and food as the major spending categories. A survey by CNW Marketing/Research found personal investment and long vacations were the most popular choices, followed by a new car and electronic products.

Spending on grandchildren also ranks high among this group. The NPD Group estimates up to $26 billion is spent on items that include toys, video games and books. At the same time, many Baby Boomers are also providing care to their parents. The New York Times reports that 44% of Americans over age 60 have at least one parent still alive, making healthcare an important issue.