Gen X Outspends Boomers on Luxury
By Jennifer Heebner, Senior Editor -- JCK-Jewelers Circular Keystone, 10/1/2005
Members of Generation X—those born after the baby boom (i.e., in the '60s and '70s)—spend 18 percent more annually on luxury goods than baby boomers do, according to the Second Annual American Express Platinum Luxury Survey.
Households surveyed had an average annual income of $235,900, were among the top 8 percent in the United States, and spent more than 20 percent of their income on luxury goods and services. In general, Gen-X households spend $26,751 annually on luxury versus $22,631 for boomers. In the area of fashion accessories, Gen X spends 47 percent more—$23,027 per year versus $16,924.
The survey also calls attention to boomers' impending retirement, which will trigger a plateau in earnings, and perhaps in spending. Survey findings reveal that boomers have already acquired many “big purchases,” including fine-jewelry collections (29 percent vs. 25 percent, compared with Gen Xers).
Generation X numbers 49 million—the smallest generational group in existence—compared with the baby boom generation, a group that numbers 76 million.
