Scottish Daily Mail

Why 50 is the most expensive age of life

- By Louise Eccles Business Correspond­ent

AFTER decades of hard work, you might expect your financial burdens to ease as you approach 50.

But this is precisely when they are heaviest, making the midlife milestone the most expensive age in your life, according to a study.

While still supporting children and paying off mortgages, the ‘sandwich generation’ may also be caring for older relatives.

The report found that 50-yearolds spend the most of any age group on holidays, but they also put more into investment­s and savings for their retirement.

In total, they spend £27,000 a year on everything from housing and living costs, to transport and their children’s education, the specialist bank Investec found.

That is £ 4,000 more than 30-year- olds and £1,000 more than 40-year-olds.

The report found that spending rapidly increases between the ages of 40 and 49, peaking at 50, and tailing off in the run-up to retirement. By the age of 60, annual costs fall by £7,000 to £20,000 a year, as people pay off their mortgages.

For many, the late fifties is also when children leave home, reducing spending on everything from family holidays to education.

By the time Britons reach 70, costs fall to £18,000 a year, as retirees spend less on housing, education, holidays, living costs and even Christmas.

Paul Green, of the over-50s specialist Saga, said: ‘People in their 50s are very much the sandwich generation.

‘They are still paying mortgages, supporting their children through university or starting second families.

‘On top of that, many will be starting to t ake i ncreased responsibi­lity for the support of older relatives and worrying about who will pay for their own care in their dotage.

‘Despite paying out more on themselves and their loved ones than at any other time in their lives, they also know that they have a limited amount of time to save as much as possible to ensure a comfortabl­e retirement.

‘Never before has the term the squeezed middle been so true.’

According to the study of 2,000 adults, 50-year-olds spend £5,000 a year on their mortgage or rent, and save almost the same into pensions, savings and investment­s.

Nick Gartland, of Investec, said: ‘ Turning 50 used to be a signal to increase retirement savings, but times have changed as today’s generation face additional financial pressures.’

The I nvestec s t udy al s o showed men outspend women by an average of £1,500 a year across all ages – £24,800 compared with £23,300.

‘Limited amount of time to save’

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