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Living costs set households back £1.8 million

Living costs set households back £1.8 million

Category: Money

Updated: 05/07/2013
First Published: 05/07/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A study by the insurer Prudential has revealed the shockingly high level of expenditure facing average UK households on a monthly basis.

According to the research, a typical family will spend around £1.8 million on expenses such as utility bills, food and fuel during their lifetime.

Over the course of a year, a typical family will spend around £29,000 on making ends meet, with £8,000 being shelled out on housing and energy costs and a further £3,000 on transport.

Annual living costs were found to peak at £45,000 amongst individuals aged between 30 and 49, due to increased family outgoings and reflecting the cost of raising a family. In contrast, costs reduced amongst those aged 75 and over to £17,000.

Vince Smith-Hughes, retirement expert at Prudential, said: "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.

"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."

"Seeking professional financial advice could help people to plan better to be able to meet their everyday living costs in retirement, as well as those steeper health costs which can occur later in life."

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