A recent report by the International Longevity Centre (ILC) sheds light on a growing economic trend observed among individuals aged 60 and above in the United Kingdom. Faced with the burden of a cost-of-living crisis and mounting concerns over future care and healthcare expenses, one out of three people in this age group exhibits hesitance when it comes to present-day spending. The ILC emphasizes the need for improved access to financial advice and guidance, alongside enhanced availability of products, services, and accessible high streets.

“Older consumers are an important part of our economy. By 2040, 63p in every pound in this country will be spent by someone aged 50 and over. But older consumers still often underspend, and the biggest reason is a concern about running out of money,” the authors explain.

Financial fears

The report emanates from a collaborative research project undertaken in conjunction with the Design Age Institute at the Royal College of Art. Its key findings include:

• Approximately 72% of individuals aged 60 and above feel that they are not utilizing their time and financial resources in the manner they desire.
• Financial worries emerge as the primary impediment, affecting both expenditure on goods and engagement in social and leisure activities.
• The absence of companionship represents another significant obstacle to increased participation in social and leisure pursuits.
• More than half of the survey respondents (52%) face difficulties in accessing and navigating places due to design limitations, inadequate transportation, and insufficient facilities. This figure rises to 63% among individuals aged 80 and above.
• Only half of those surveyed feel they shop online to the extent they would prefer, primarily due to the absence of human interaction. Concerns regarding online scams and fraud also play a role.

“When we don’t know how long we are going to live for, whether we, or our loved ones, might need to pay for care, and how far our money will take us in the future, it’s unsurprising that a lot of us are understanding,” the authors say. “Having the right financial products can play a part in helping us spend in the way we would like to, but it’s also important to ensure that everyone has access to affordable and accessible financial advice.”

Improving matters

The “Money well spent?” report identifies practical measures that various stakeholders, including the government, financial services, regulators, businesses, town planners, and designers, can adopt to encourage spending in later life. These measures encompass:

• Ensuring improved access to financial guidance and advice, along with the availability of appropriate financial products to support consumption in later stages of life.
• Enhancing last-mile transportation options and encouraging all towns and cities to become part of the UK’s Network of Age-friendly Communities.
• Recognizing and rewarding accessible design, while utilizing technology to enhance the shopping experience both online and offline.

“This research provides invaluable insights and recommendations that inspire us to invest in our own wellbeing, dedicating time, energy and resources to lead fulfilling and vibrant lives,” the authors conclude. “However, collaboration between industry and government is crucial to provide the goods, services and facilities that empower us to remain independent, confident and capable consumers.”