Pensioners now spend an extra £100-a-week on drinking and eating out, report finds

Partying pensioners have been unmasked as a generation of big spenders in a report which reveals that they spend more than £100-a-week on alcohol and eating out than their predecessors.

People aged 65-and-over living in the UK are increasingly likely to enjoy their retirement.

This is not only in contrast to their previous generation, but also millenials who are devoting a smaller amount of their spending on “fun stuff” such as recreational activities, clothing and footwear, restaurants, hotels, culture, alcohol and tobacco.

In a report published today by the Resolution Foundation entitled, An Intergenerational Audit for the UK: 2019, researchers found that between 2001 and 2002, the average Briton aged 65 and over spent £283 on such “fun stuff”.

However, this figure rose by £105 in 2017-18 to £388.

While experts acknowledge that the rate of inflation has impacted the increase in figures, they added that many pensioners are reaping the benefits of “enjoying later life” and that spending on non-essentials has not only “grown strongly” but is also “increasingly less about covering the essentials”.

In contrast, millennials, or those aged 18-29, spent £406 a week in 2001-2001. However by 2017-2018, this figure had fallen by £28 to £387.

Researchers found that weekly spending on non-essentials has increased with each generation in the past 20 years, contributing to the notion of partying pensioners enjoying their retirement and increasing their spending.

Furthermore for people aged 30-49, researchers found that their weekly spending rose by £3 to £418 in the same period and those aged 50-64 saw their weekly spending rise by £44 to £460.

The report noted: “Overall, these changes in what people spend their money on support the conclusion that the 21st century has been characterised by a squeeze on spending – especially spending that is discretionary, or just plain ‘fun’ – for millennial and generation X cohorts.”

Researchers also identified a number of intergenerational living standards challenges facing Britain, including the fall in money spent by 18 to 29-year-olds on non-housing items, including recreation and eating out, returning their pay to pre-financial crisis levels, and a "long road" to recovery on home ownership.

The report was launched in conjunction with the think tank’s new Intergenerational Centre, which will be dedicated to analyse policy on generational living standards.

David Willetts, President of the Intergenerational Centre, said: “From frustrations about buying a first home to fears about the cost of care, Britain faces many intergenerational challenges. The big living standards gains that each generation used to enjoy over their predecessors have stalled.

“But while Britain’s intergenerational challenges are big, they are not insurmountable. Welcome steps are already being made – from stronger pay growth for young millennials to the success of auto-enrolment into pension saving.

“By looking for solutions through a generational lens we can repair the social contract between generations, and help bring our country back together again.”

Claire Turner, Director of Evidence at Centre for Ageing Better, said: “It’s great that many people are enjoying later life and can do the things they want to do. One of the keys to a good later life is having lots of good social connections.”

However she added: “But we mustn’t ignore the growing number of people missing out. Older people who don’t go out much often say it’s because of a lack of money, being in poor health, or needing to care for a loved one.

“Relationships are what matter most to us all. We need to create communities that make it easier to stay active and be connected.”