Still giving at 50 to the tune of £6.6 billion
Rather than being a drain on society, the over 50s make a significant positive net contribution to the UK economy, according to a new research report published today.
The ‘Still Giving at 50’ report, from specialist insurance provider RIAS, reveals that the 21m people over the age of 50 had a net fiscal contribution of £6.5 billion to the UK public finances in 2008. Each individual over 50 made a positive fiscal impact of £313 last year1.
Pension makes up just 20% of income
The research, which looks specifically at the financial effect of people aged over 50, has found that the average income for someone aged 50 or over is £294 a week – £5 more than someone under 50. Only one fifth of this income (£62) is made up of state benefits such as a pension: over half of the income of this age group comes from paid employment as people choose to work for longer.
Spenders, not savers
And far from being thrifty at 50, the older generation spends £179 a week. They out-spent the younger generation in 2008 by almost 13% each week, equivalent to £21, with the majority of their money spent on food, drink, eating out, entertainment and hobbies.
Janet Connor, Managing Director at RIAS, comments: “The public stereotype has long been that the over 50s are a drain on society with an expected life path, taking more out of the public purse than they put in. In reality, the complete opposite is true. People over 50 make a positive contribution financially, and feel much more satisfied with their lives, because they feel more relaxed and have more time to do the things they want.”
“Our latest research report shows that the over 50s should be celebrated for their outlook, life experience and the knowledge they can pass on to other generations. From their entrepreneurial spirit, through to their record-breaking achievements, today’s over 50s are diverse, complex and aspirational – one size really doesn’t fit all!”
No time for stereotypes
The research also found that today’s baby-boomer generation is a far cry from any miserable or grumpy stereotypes. Nearly nine in ten (87%) are satisfied with their standard of living, and many put this down to simply having more time, being more relaxed and having paid off their mortgage.
Other findings from the ‘Still Giving at 50’ report include:
- Over eight out of ten (81%) strongly disagree with the sentiment that they are a ‘drain’ on society.
- 1.7m over 50s currently own their business, and 860,000 people are planning on starting a new venture in the near future.
- One quarter (26%) have retrained past the age of 50 or taken a different career direction.
- 4m have taken up a new sport or learnt a new language.
- 147,000 have broken a record, either a Guinness, World or UK record, since they turned 50.
- Three out of ten want to grow old ‘disgracefully’, and almost one in ten (8%) ‘feel younger than ever before’.
Janet Connor continues: “As a specialist insurer we recognise that the over 50s are active, individual, busy and experienced, and want to deal with companies who listen to their needs, don’t make assumptions and give them choices.”
The ‘Still Giving at 50’ report coincides with RIAS launching its first ever Brand Response advertising campaign, entitled ‘Better with Age’, which dispels stereotypes associated with being over 50 years old, and supports RIAS’s new brand strapline of ‘RIAS, where insurance gets better with age’.
Customers can contact RIAS on 0800 130 30 30, or online at www.rias.co.uk
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Notes to Editors
1The fiscal impact is calculated as the balance of taxes paid and benefits received annually. We assume that state pensions received equal National Insurance contributions made over a person’s working life. 21m people over 50 with a weekly positive fiscal impact of £6 equates to £313 each year.
All figures, unless otherwise stated, are from CEBR, 2009. Data has also been collated from a ‘Still Giving at 50’ survey by Opinion Matters (with 1022 over 50s interviewed from 21st to 26th August 2009).
For further information, as well as requesting a PDF of the ‘Still Giving at 50’ Report, please contact:
Jo Carr, Dylan Watkins or Vaneetha Balasubramaniam at Seventy Seven PR on 020 7492 0977 or email rias@77pr.co.uk
Alternatively, contact Lucy Pope, Consumer Communications Manager, RIAS on 01202 254445 or email lpope@rias.co.uk
About the Research
RIAS commissioned The Centre for Economics and Business Research Ltd (CEBR)to analyse the economic impact of the age group 50 years and older in August 2009. A PDF featuring key statistics and analysis is available on request.
Additionally, RIAS commissioned research amongst 1,022 people over age 50 with Opinion Matters Research in August 2009.
About RIAS
RIAS was established in 1992 and is a specialist provider of insurance products for the over 50s age group.
Part of Fortis (Insurance UK), RIAS has nearly a million motor, home and travel insurance customers, employs over 1,100 people across two UK sites, and is one of the UK’s fastest organically growing insurance intermediaries. RIAS negotiates with a panel of insurers to secure competitive, value for money products.
As a leading provider of award-winning personal and commercial lines insurance solutions in the UK, Fortis has a successful customer-centric strategy, founded on aligning its activities to how customers want to buy insurance, combined with delivering high quality products, manufactured at costs better than market norms.
Insuring in excess of 7 million customers and working with a range of partners, Fortis is recognised for delivering consistent and high-quality customer experiences. In 2008, its non-life profit before tax and interest was £76 million and its non-life GWP was £760 million.