Over 50s are big spenders on home and lifestyle

Part of this could well be driven by retirement as almost half of people say they notice more repairs that need to be done to their home since retiring.

Two thirds have bought a new kitchen, the same number have bought a new bathroom and two thirds say they have carried out major work to their home.

According to the research by Saga Personal Loans amongst over 8,000 over 50s, these home projects do not come cheap; typically people said they spent around £17,000 on renovations, they spend around £5,000 on a new bathroom and £13,000 on a new kitchen. People seem keen to continually revamp their homes, with one in eight typically refitting the bathroom twice and carrying out three-six major home improvements.

And the spending does not just stop at home - people over 50 account for almost half of the UK’s spend on motoring. Having a reliable car is a key concern whether they need it for commuting, shopping or for leisure, which could explain why a people in their 70s say they have bought three new cars since turning 50.

Wanderlust also kicks in once the children have left home or people stop working. People are keen to spend their extra time travelling the world, typically taking 7 foreign holidays in their 50s, whilst people in their 70s said they had had 22 foreign holidays since turning 50.

When it comes to paying to achieve their dreams, much of this is achieved by diligent saving throughout their working lives, others use income by continuing to work for longer either full or part time, some use the equity they have built up in their homes and many use loans to pay for maintaining their lifestyle.

Nici Audhlam-Gardiner, managing director, Saga Money, commented: “We all have aspirations to maintain or improve our lifestyle as we go through life and these options should be open to people even when they stop working. New cars and home improvements are the key reasons people take out loans after 50, but many people are denied a loan because of arbitrary or income age limits requirements from lenders.

“As we get older our income sources become more diverse; typically we have a steady pension income and often earn further income from investment and other sources. Lenders have been short sighted by turning down people by looking only at earned income which is one of the reasons we launched Saga Personal Loans, to give more people access to credit they can afford in order to live the way they want to.

“Industry research also shows us that people over 55 are keen to pay off their debts as quickly as possible and as loans give them an absolute end date and the ability to overpay, they often prefer using a loan to spending on a credit card.”