Household and fuel costs are spiralling out of control and now cost close to £2 million over a lifetime.
That is the finding of research by finance firm Prudential, which has looked into the costs and expenses faced by modern-day consumers.
It found that the average household will cost a staggering £1.8 million over the course of a lifetime, or £29,000 per year.
These costs fluctuate over time, with consumers aged 30 to 49 bearing the largest costs – an average of £45,000 per year – as they raise children.
Older generations have the lowest household costs; 65- to 74-year-olds spend an average of £25,000 per year, while over 75s spend £17,000.
“Although living costs do fall as people reach their twilight years, health costs tend to increase, so the average household costs are nowhere near covered by the State Pension, even in households with two pension incomes,” said Vince Smith-Hughes, retirement expert at Prudential.
“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.”
The research found that housing and fuel costs are the largest drains on consumers’ finances, costing more than £1000,000 over the course of a lifetime.
Other big expenses are transport and recreation, costing us an average of £212,000 and £230,000 respectively.
“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,” added Mr Smith-Hughes.
“Our analysis shows that the average household spends £230,000 on recreation and £128,000 on hotels over the course of a lifetime, so by tightening their belts a little people could afford to save more towards retirement.”
If things are getting too much, perhaps consider a unsecured loan to give you access to the funds you may require. Of course, no such loan should be taken lightly, and as with any form of borrowing it is important that you are able to meet repayments.