Get the facts

The baby boomer generation

• Baby boomers (those born between 1946 and 1964) are an important economic force. According to some estimates the over 50s population now commands approximately 80% of the UK's wealth.
• People in their 50s get most of their income (80%) from employment and self-employment. This falls to just 10% for those in their 70s.
• The pensioners' income survey in 2007 shows that retired people are wealthier than ever. Over the past 26 years the real income of retired people has risen every year by between 2.5% and 3%. Newly retired people are much better off than those now aged 75 and over.
• Pensioners' income comes from five sources: state pension = 45%, occupational or personal pension = 28%, 16% comes from paid work, investment income = 9% and other sources = 2%.
• Over half of the over 50s own their homes outright, and just under a quarter are still buying their home with a mortgage.
• Over the last 40 years, over 50s' spending habits have changed dramatically. No longer concerned with just the basics of life they now spend over double the amount that they did in the 1950s. This emphasises the growing importance of this group, in both demographic terms and as high-spending consumers.
• In 1965 food made up just over 20% of the total spending of the 50-64 age group, but the figure in 2006 was just under 12%. We can see a similar trend in expenditure on housing, fuel, light and power, with the over 65s in particular decreasing their percentage spend on these items.
• There has been a real increase in spending on durable household goods. The over 50s now spend on average almost £3,000 per year on items such as new TVs or Sky+ boxes - a further demonstration of their spending power.
• The 50-64 and over 65s age groups now spend £3,655.60 and £4,160 respectively on 'luxury' products per year, including package holidays and hairdressing.
• The predominant alcoholic drink bought has also changed over the last 50 years, with beer/cider making up 63% of spending on alcohol in 1965 compared with just 20% in 2006. It is now wine/spirits which are the most popular for the over 50s, with 80% of alcohol spend going on this at a total average cost of £30 per month.

The ‘sandwich’ generation

• A recent survey of 12 developed and 12 developing countries showed that 41% of people in their 40s and 50s and one-third of those in their 60s and 70s have provided financial support to a relative or friend over the previous six months.
• Parents are paying on average £21,314 to help their children get on the property ladder. 20% have already dipped into their savings to help their children buy their first home, while a further 22% plan to offer financial help to their offspring when they come to buy.1
• 16% of those in their 60s and nearly one-third of those in their 70s provide financial support to grandchildren.
• One-third of those in their 40s and 50s provide support to other family members, mainly parents. Nearly half of those in their 60s and 70s provide financial support to other family members, mainly siblings.
• Older generations are often providing more financial support to friends and relatives than they are receiving.

Does money make you happy?

• A study commissioned by the National Lottery has confirmed, ironically, that the best things in life are free!4
• The study compared the 'happiness levels' of lottery jackpot winners with a control group of non-lottery winners, using a 'Satisfaction with Life Scale'. Think a new Bentley or diamond necklace will bring a smile to your face? Well think again! The things that really make a difference to your happiness are listening to music, reading a book, or enjoying a bottle of wine with a takeaway.
• Study leader Dr Richard Tunney concludes: 'It appears that spending time relaxing is the secret to a happy life. Cost-free pleasures are the ones that make the difference - even when you can afford anything that you want.'

The question isn't at what age
I want to retire, it's at what income.
George Foreman