Datamonitor’s 'empty nesters' report - spend, spend and spend some more

A number of UK papers give coverage to Datamonitor’s new report entitled Over-50s Never Had It Better. I was not able to read Datamonitor’s press release, since they haven’t got it onto their site yet, but I expect the press coverage is mainly taken from the release.

These comments are taken from the Scotsman.

Britain’s consumer boom is being underpinned by a growing number of "empty nesters" - parents who are enjoying renewed spending power after their children have left the family home.

By 2008, there will be a total of 8.5 million "early empty nesters" in the UK - aged 50 to 64 - with an annual disposable income of £17,872. This is almost 50 per cent higher than the national average.

The rapid growth in spending comes as a result of increasing incomes, coupled with people planning for an enjoyable and stress-free retirement, and a strong desire to reward themselves both for raising a family and for a lifetime’s work.

Many empty nesters, faced with a four- or five-bedroom property that has been vacated by their family, opt to downsize. Soaring house prices mean that such a move can often leave couples with tens and even hundreds of thousands of pounds to invest or spend during their retirement

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Why is it I don’t feel happy with this view of things? Naomi Watkins, the research director at the Millennium, made two excellent points: “today’s empty nesters are more likely to see children return to the family home (“boomerang babies") and at the opposite end of the spectrum, people are living longer and those in the 50-64 age group increasingly find themselves looking after elderly parents”. Of course there is the 50% of people who retire with no private pension provision.

I will try and get the whole report to see if it gives a more balanced view than is suggested from the press coverage. Dick Stroud: www.20plus30.com