Compared with non-retired households pensioners have spent up to 50 per cent more in the past 10 years, according to Canada Life.
Retired people are now spending £17,000 per household, with spending rising faster than disposable income. Retired households will spend £139bn this year, up 71 per cent compared to 2005, with spending forecast to reach £194bn by 2025.
Retired households made up just 12 per cent of the UK’s overall spending in 2005, but within just 10 years, they have increased their share by a quarter, now comprising 15 per cent.
Richard Priestley, executive director of retirement income at Canada Life, said: “The figures shine a light on how much more important the older demographic is in our economy.
“As the UK’s retired population swells, its spending power will only increase. 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.”
Adviser view:
Jonathan Rowley, director and IFA at Hamnett Wealth Management, said: “I call it the golden generation. As someone who deals with mass affluent clients - our parents are a example - they were born post-war, had access to university and moved into well-paid professions. The biggest driver is they’ve probably enjoyed the final salary schemes of the 70s and 80s whereas people are today, in theory, put into pensions but many have not enjoyed the final salary guarantee.”