Gender gap in retirement income triples

12 Jan 2018

Over 50s would rather spend their money than save it for their children new research reveals

Research conducted by life insurer SunLife, has revealed that the majority of over 50s would rather spend their money on enjoying their retirement, than leaving it for their children after they have died.

The insurer found 62% of babyboomers thought money was there to be spent. Online interviews were completed by 50,004 people aged 50-plus in January 2017. It was found that one in five people were spending their money on new hobbies, learning new skills and visiting new countries.

But despite some perceived misgivings about the wealth of over 50s, when compared with younger generations, particularly with regards to their often generous pension arrangements, SunLife found children supported their parents’ spending habits.

Ian Atkinson, marketing director at SunLife, said:

“The vast majority [of young people] don’t see their parents as selfish simply for spending and enjoying their own hard-earned cash – just one in 10 thought their parents are spending too much of their inheritance.”

However, SunLife detected some disparity between children genuinely wanting parents to enjoy their retirement while also being aware that they will need some financial help. The poll found one in 20 adults admitted they were relying on an inheritance to either help pay off debts or to provide or supplement their income later in life.

The same number of adults said they were depending on their children to help support them financially when they are older.

Mr Atkinson said: “While a third of people in their 60s and 70s say they try and save their money to pass on as an inheritance, far more would rather enjoy it now.”

“This attitude is clearly a sticking point for some, with one in 10 complaining that their parents are having too much fun with their inheritance.”

“However, most are happy to see their parents having fun with their cash – after all, this often involves them anyway, with a third of over 50s saying they spend much of their money on their kids and grandkids”.

By Kathryn Pegler