2nd February 2016
Sixty-five to 79 year olds are the happiest age group new data from the Office for National Statistics shows.
The results found that those aged 65 to 79 tended to report the highest average levels of personal well-being.
Ratings of life satisfaction and happiness were at their lowest, on average, for those aged 45 to 59.
Meanwhile, separate figures today from Canada Life give further insight into the happiness findings as they show that retired people have increased their spending by 53% in ten years, to £17,465 per household
Spending has risen faster than disposable income (which is up 43%), as retirees feel comfortable spending the additional income they have received.
Retired households will spend a total of £130bn this year, up 71% compared to 2005, and spending is forecast to reach £194bn by 2025, while the non-retired population has seen a much slower increase, with collective spending up just 27% since 2005.
Retirees are enjoying life more, with increased spending on having fun up 56% per household in last decade, while spending on essentials is up only 38%.
Life is less fun for non-retired households, with spending up just 9% since 2005, well below inflation; spending on essentials up 22%.
Retirees have increased their spending at almost three times the rate of non-retirees in the
Richard Priestley, executive director of retirement income at Canada Life, says: “Times have changed for retirement in the UK. Living standards are better than ever before, and retirees now have the financial firepower to make the most of later life. Pensioner poverty has not been eradicated altogether, but there have been dramatic improvements in income across the board, and most retired people are living comfortably. Spending has boomed as a result, even while the rest of the country has tightened its belt.
“These figures pre-date the new pension flexibility which dangle the temptation to spend hard-saved pensions in a flash. Taking advice, and planning properly for retirement is more crucial than ever to ensure we can all meet our lifetime goals, and maintain our lifestyles through retirement.
“The figures also shine a light on how much more important the older demographic is in our economy. The silver pound is growing in strength, and as the UK’s retired population swells, its spending power will only increase further. This has clear implications for businesses marketing their products and services, and highlights the opportunity for those able to meet the needs of this segment of the population.”