Over 60s least likely to save for Christmas

A new poll by MoneyMagpie reveals that 65% of over 60s don’t save ahead for Christmas, instead relying on their current income at the time to pay for the festive season.

The poll showed that while 81% of the 61 to 70 age group spend more than £100 on Christmas, they are also the most likely to pay for the festive season with their current income instead of planning ahead and saving.

The younger the respondent, the more likely they were to plan ahead to afford Christmas. Those aged 30 or under showed an early budgeting mindset with 69% planning ahead, while 55% of 41-50 year olds and 49% of 51-60 year olds saved ahead. This is also likely to reflect income stability and types, with younger people more likely to face financial difficulties and unstable incomes compared to older people with investments and savings alongside an employment income.

Parents versus those without children also showed a difference in how they prepare for Christmas, with 63% of parents saving in advance compared to 45% without children. This fits with other trends, including that 37% of parents spend over £500 on Christmas compared to only 19% without children spending in that range. Parents were also more likely to reach for the credit card to fund this expense, which isn’t surprising with the higher cost of having a family compared to being childfree at Christmas.

MoneyMagpie Editor and financial expert Vicky Parry said “While the over 60s are those with a predictable income compared to younger respondents, they have a more conservative approach to how much they spend at Christmas, too. Decades of financial education is showing in these trends, as they tend to pay from their current income such as pension drawdowns rather than relying on credit cards to fund Christmas.

“The saving and spending habits revealed by the survey reflect that older respondents have adult children, too: their financial responsibility at Christmas is no longer about creating the magical event of Christmas Day like we all do with younger children. The more conservative approach to spending also reflects changes in consumer behaviour towards Christmas through the generations. It’s become an expensive time of year for individuals and families alike, compared to a few decades ago when there was less pressure to have the latest decorations, loads of gifts, or huge feasts.”