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Kids Out, Quids In
By 2008, the UK will have 8.5 million 'Early Empty Nesters', people aged between 50 and 64 whose children have left home or who have never had children, according to the latest from Datamonitor. Their annual disposable income per capita will have increased by 8.5% to £17,872, almost 50% above the national average.
The UK's Empty Nesters enjoy Europe's highest annual disposable income per capita, according to the report - they are also more inclined than other groups to 'spend lavishly on rewarding themselves', not only on big ticket items like travel, new homes and new cars but also on food, drinks and personal care. In 2003, Empty Nesters spending on CPG (Consumer Packaged Goods) totalled £38.4bn and a rise to almost £46bn is forecast by 2008.
Annual per capita disposable income for (all) Empty Nesters (UK £), 2003
| |
| UK |
13,673 |
| Netherlands |
13,165 |
| Germany |
12,942 |
| Sweden
|
11,841 |
| France |
11,808 |
| Italy |
9,465 |
| Spain |
8,316 |
| Other
Europe |
11,371 |
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| Europe
|
11,371 |
| US |
11,905 |
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| Source:
Datamonitor
analysis |
Average income for Early Empty Nesters across Europe as a whole is forecast at £14,328 for 2008.
According to Andrew Russell, Consumer Markets Analyst at Datamonitor and author of the report, 'The rapid growth in spending comes as a result of increasing incomes coupled with people planning for an enjoyable and stress-free retirement and a strong desire to reward themselves both for raising a family and for a lifetime's work'.
Empty Nesters' awareness of increased health risks as they grow older means they are also looking for health-related products such as functional food and drinks. 'Better heart health enables consumers to indulge in more active pursuits, such as dancing, entertaining or looking after grandchildren' says Russell, adding that as a result they often develop health regimes to ensure a constant intake of healthy products.
Late Empty Nesters, aged 65+, are currently more numerous than Early Empty Nesters - there are 9.5 million in the UK -but their disposable income is smaller as most are living on their pensions and/or savings. Average disposable income in the UK is £10,800, again just above the European average of £10,019. Late Empty Nesters are more likely to wait for special occasions to indulge in the luxuries discussed above.
Datamonitor's web site is at www.datamonitor.com
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