The average UK household will cost a total of £1,802,000 (or £29,000 a year) to run over the course of a lifetime, according to new analysis by Prudential of the ONS Family Spending Report.
The figures show that household costs fluctuate over time, with annual costs peaking at £45,000 when the head of the household is aged between 30 and 49, reflecting the costs of raising children.
By comparison, pensioner household expenditure drops to £25,000 a year when the head of the household is aged between 65 and 74, and to £17,000 for those aged 75 and above.
Commenting on the figures, 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. This pays just £10,310 a year currently to the average retired household. 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.”