Money Watch – Personal Finance Blog

MoneyExpert: Life Begins At 40, But You Pay At 34

Life may begin at 40, but the average Briton begins paying for it at 34, market research for Axa Wealth Management has revealed.

The age is the typical point at which three major life commitments – children, mortgages and a car – hit hardest, with the average adult shelling out an additional £32,441.

This is calculated as spending on top of the usual outgoings, and is bumped up significantly by property deposits, being the average age that most now buy homes.

Previous to 34, most people’s highest outgoings occurred at 26, with the average adult spending on holidays, honeymoons and cars.

When asked, most adults between the ages of 55 and 64 estimated that their most expensive age had been 43, due to university costs and home improvements.

“While 34 was on average the most expensive year in life for all Britons, this study demonstrates that people of all ages face peaks in outgoings which see them having to cope with major expense at different times in their lives,” said Colin Nelson of Axa.

“Most of these expenses are for pre-planned purchases or events that we tend to expect to happen to us at some stage.

“Planning ahead for these is clearly important if we are to mitigate the impact of these events on our finances.”

If the shortfall proves just too much, hard pressed homeowners, car-drivers and parents can make up the costs with a best rate secured loan.

This article: © Moneyexpert Ltd.

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