Over-50s ‘go cruising, while young tighten belts’
People over the age of 50 are spending more and more on holidays – including cruises – while younger people are travelling less, according to research.
BBC News reports that over the past five years, the older age group has increased spending on travel by 23%, says a study by the CEBR consultancy for Saga. Those under 50 have cut spending on tourism by 5% during the same period.
As a result, the older generation is now responsible for well over half the UK’s total spending on holidays. Last year, the over-50s spent £39bn on travel, including £2.1bn on cruises. Other exotic destinations included exploring the silk road in Uzbekistan, the report says. Saga specialises in selling insurance and holidays to the over-50s.
Earlier this year, the Institute for Fiscal Studies (IFS) said that younger people had suffered a fall in income since the financial crisis, while those over 60 had enjoyed a higher standard of living. In the seven years up to 2015, that age group saw an 11% rise in incomes, it said. However, those under 30 saw a 7% drop in income over the same period, with those in the middle seeing little change. The divergence in financial fortunes has been guaranteed by the “triple-lock” on pensions.
Since April 2011, the basic state pension has risen in line with average earnings, consumer price inflation or 2.5% – whichever of the three is highest. Earlier this year, a committee of MPs launched an inquiry into generational fairness. It is expected to publish its report next month.
(Article source: BBC News)