Household costs past £1.8m mark over a lifetime

The total costs of running a household sets Brits back a staggering total of more than £1.8 million, with housing and fuel costs putting the biggest dent in consumers’ budgets.

If you are keen to build up a savings pot, you can compare savings accounts with Propertywide.

The findings come as part of a new analysis of the ONS Family Spending Report by Prudential and reveal that households costs see Brits forking out £29,000 a year or of £1.802 million over a lifetime.

Of this figure housing and fuel costs make up £508,000 over a lifetime.

The research also showed that household costs vary over our lifetimes, reaching a peak of £45,000 where the head of a household is aged between 30 and 49, which reflects the high cost of raising our brood.

Where the head of a household is aged between 65 and 74, household running costs drop to £25,000 a year. For those where the head of a household is over 75 fall further still to £17,000. This may reflect the fact that pensioners may have a paid off all or part of their mortgage.

Vince Smith-Hughes, retirement expert at Prudential, argued that consumers should start saving for their financial future at the earliest possible opportunity.

“These figures are startling, showing a gulf of more than £14,000 annually between income and expenditure in the early years of retirement if the householders rely solely on the Basic State Pension. This pays just £10,310 a year currently to the average retired household,” he said.

“To make up the difference, pensioners will have to dig deep into their savings or personal pension plans, unless they simply choose to go without.

“Saving as much money as possible from early in working life is key to being able to supplement the State Pension and ensure sufficient income to live a comfortable retirement.”

If you are keen to build up a savings pot, you can compare savings accounts with Propertywide.

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Posted by: Nicola Severn Categories: Finance Tags: , , Comments Off on Household costs past £1.8m mark over a lifetime

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