It's no wonder that pensioners are happiest - they're richest
Government happiness statistics recently revealed that people aged between 65 and 79 were happiest of all - while those aged between 45 and 59 were the least satisfied with life and the most anxious. It's no wonder that retired people are happier, a separate study has revealed that older people are richer, enjoying life more, and spending more money on having fun.
The study, by Canada Life, discovered that over the past 10 years, spending among retired people is up 53% to £17,465. Retired households will spend a total of £130 billion this year, up 71% compared to 2005. Over that time, spending among the working age population is up just 27%.
And this isn't a tale of rising living costs, and having to spend a fortune just to make ends meet. Disposable income is up too - by 43% in ten years - while non-retired households have seen an increase in disposable income of just 26%.
Canada Life found that spending on essentials was only up 38% among retired households, so they were spending 56% more on having fun. This contrasts with spending on fun among the non-retired population, which has remained constant since 2005 - and not kept pace with inflation. Spending on essentials, meanwhile has increased 22%.
Richard Priestley, Executive Director of Retirement Income said: "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."
The bad news
Unfortunately what we are seeing is a golden time for retirees - and is not likely to be something that the current working population can look forward to. A separate study by Willis Towers Watson found that three quarters of workers think they will be poorer than their parents in retirement. Younger employees are likely to be particularly concerned for their future, as 20% of them see themselves struggling to make ends meet.
Minh Tran, senior consultant at Willis Towers Watson, said: "Employees overwhelmingly anticipate less wealth in their retirement, compared to their parents' generation. Younger employees are particularly concerned about their financial situation. The immediate financial priorities facing employees in their 20s and 30s – including student debt, housing deposits and childcare costs – can make it difficult to prioritise long-term issues such as retirement savings."
When you consider that many younger people start their working lives with student debts, and a mountain to climb in order to save for a property, it's not surprising they feel they have less to save for a pension. And when you add in the fact that future state pensions will be even less generous for those currently in their 20s and 30s, you can see just what troubles lie in store.
Is this fair?
It's these kinds of figures that have prompted a government study into intergenerational fairness, investigating whether government policies are unfairly favouring older people.
However, as we reported last month, a different study by the Centre for Economics and Business Research, highlighted that the over 50s have worked hard and saved hard in order to secure a comfortable retirement - making sacrifices along the way. Many of them are also stepping in and helping younger family members with their hard-earned cash, so every generation is benefiting from their commitment to saving.
But what do you think? Is there anything unfair in older people having more money to enjoy in retirement, or is this exactly what they worked so hard for? Let us know in the comments.
