Pensions - Articles - Currency of retirement is having fun as new fivers roll out


As the first polymer fivers hit the tills and wallets, analysis from Retirement Advantage reveals that the UK’s over 65s spend a greater proportion of their money on lifestyle products and services than on those which are deemed essential.

 The spending breakdown has been graphically represented as a new Retirement Fiver to show how much those of retirement age spend on different goods and services as a proportion of £5. According to Retirement Advantage, understanding how people spend, day-to-day, has a big impact on the way in which people entering retirement plan their finances.

 The data[1] reveals that essential elements, including housing and bills, food and drink, clothing and footwear, account for 47% of total spending, or £2.36 of a new polymer fiver. Meanwhile, non-essential products and services, such as leisure activities, holidays and eating out make up 53% of spending, or £2.64 of a fiver.

 Andrew Tully, Pensions Technical Director at Retirement Advantage, comments: ‘With the new polymer five-pound note launching today, we wanted to investigate how older people really spend their money. Our analysis shows that the over 65s spend more money on what you could class non-essential elements, than they do on covering the basics such as housing, food, utilities and health.

 ‘It’s clear that older people want to have fun, not just survive. Our research tells us many plan to prioritise quality of life in retirement above simply making do. But to do this, retirees should be making the most of the new pension freedoms by securing an income to cover life’s basic necessities which then creates the flexibility to allow any remaining savings to grow and be used when needed to enjoy a fulfilling lifestyle.

 ‘To get the best possible outcome, it’s important that those approaching retirement get professional financial advice and consider how they can take advantage of new hybrid products which offer both guaranteed income to cover daily expenses and flexibility to access money for one-offs or emergencies.’ 

 Retirement Fiver: Breakdown of spending

 

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.