Average UK household spends £1.9m in a lifetime

According to a recent report produced by the Tilney investment group, the average UK adult will have spent £1m by the time they reach the age of 50. A further £893,500 will be spent during the later years of their life, with another £420,500 being forked out during retirement, according to data from the Office for National Statistics.

Spending up to the age of 50 is divided into one third on housing, while £203,000 will have been spent on leisure activities, like restaurants, holidays and entertainment.

The figures for the wealthiest quarter of society are much higher, with a total spending figure of £2.8 million. Leisure will account for £342,000, and retirement costs of £1m account for one in 16 people. The vast majority of people who are aged between 45 and 65 years of age believe that they can maintain or improve their living standards during retirement, although the study found that the amount required is underestimated by £100,000.

The report stated that an extra £14,100 will need to be found in addition to the state pension, for an average UK household. However, high-earning households will have to find an extra £30,900 to maintain their lifestyle.

According to Tilney, although the figures seem large, they are a reflection of real life in the UK today. The advice from money experts is to start your financial planning as early as possible, so that you can maintain or improve your lifestyle during retirement.