Monday, February 13, 2017

One in 16 retired households will enjoy £1m of spending over their future lifetime. That's a fact you should know

Tilney is a company of financial advisers/investors. I think it is fair to say that you must read their research findings with that in mind. That said, their analysis of the future spending of different age groups is fascinating. I have never seen anything like it before.

You should definitely read this report : The cost of tomorrow - Forecasting our future spending

The findings are based on the latest ONS Family Spending Survey. The researchers calculated how much a household would spend at each stage of life based on the typical life expectancy for someone of that age.

The researchers calculated the spending for the top and bottom quarter of households in each category according to the income characteristics of each age group. Additional insight came from a survey of 2,007 adults aged over the age of 45 years.

Here are some factlets for you to consider.

From the age of 65, the top quarter can expect to enjoy spending £683,000;
the average over-65 household £420,000

Housing costs diminish with age – so a typical retired household can
expect to spend £99,500 on having fun, £41,000 of which is on holidays

One in 16 retired households will enjoy £1m of spending over their future
lifetime, and is able to devote disproportionately more to the finer things
in life

Not as if you need telling, but this data spells out the magnitude of the consumer spending by older people. It illustrates the huge regional differences and the differences between the most affluent and least affluent 25% of the age group.

Well done Tilney for producing such a good research report. Dick Stroud

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