ANALYSIS of spending has revealed that the ‘golden years’ don’t begin until retirees surpass 70, leaving incoming pensioners in a state of ‘pre-tirement’ as they adjust to their new way of living.
For most workers, retirement conjures thoughts of relaxing days and long holidays in exotic locations. However, new research suggests that retired Brits refrain from splashing the cash on life’s luxuries until they have adjusted to their new finances, only starting to feel more comfortable enjoying the finer things in life at 71.*
In fact, those aged between 71 and 80 spend on average £663 per year more on life’s luxuries, than those aged between 51 and 60. The most extravagant annual spending is on holidays, where 71-80 year olds spend an average of £1,125 per year – £375 more than their younger counterparts.
Those aged between 71 and 75 also take out 243 per cent more travel insurance policies each year than those aged 51-55, according to research by over-50s specialist insurer, Staysure.
By 71, retirees have settled into their new financial situation and any anxiety surrounding spending has worn off. They’re still fit and healthy, and they want to see the world.
The survey also reveals more adventurous holidays are taken after a few years of retirement, after which, over 50 per cent of retirees feel they’ve finally got the right mix of time and money to take those trips of a lifetime. This desire to travel continues until the age of 80 when a noticeable drop off in travel insurance policies is seen.
Despite spending less on holidays, those between 50 and 70 are managing their finances well and have on average, seven per cent more savings than 71-75 year olds and save £65 more per month than the over 70s.
Happiness in retirement also increases with age, with 54 per cent of 55-60 year olds stating that they were happy with retirement on the whole, versus 74 per cent of those aged 71-80.
Staysure Chairman, Ryan Howsam, said: “While many of us look forward to retirement, it’s important to remember that it is a big milestone in life. Just as we had to adapt when we first started working, so too do we, when we retire. Understandably, it takes a while for people to adjust to not working and having the comfort of a monthly salary and whilst big purchases like holidays might be put on hold for a few years we see that they increase again after some financial adjustments.”
Staysure is committed to providing the right level of cover for our customers, which is specifically designed for the over 50s. Their policies offer a wide range of medical condition cover including cancer, diabetes, high blood pressure and heart conditions, so Staysure customers can enjoy travel long into retirement.
*Stats are based on statistics from Staysure plus a Luxury Lifestyle Survey of 2000 people aged 50-85 conducted on behalf of Staysure Ltd in May 2017