UK households spend Â£1.9 million in a lifetime - with Â£400,000 paid out in retirement

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The typical UK household spends Â£1.9 million over the course of a lifetime, according to a report.

The average adult will hit the £1 million household spending milestone at the age of 50, with another £893,500 spent in later life, with £420,500 going in retirement, an analysis of Office for National Statistics data by financial planning and investment group Tilney found.

A third of spending before the age of 50 will have gone on housing costs, while holidays, restaurants and entertainment will have cost £203,000.

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But by the same stage in life, the wealthiest quarter is halfway through their £2.8 million total spending figure, with £342,000 going on leisure activities, and one in sixteen enjoying a £1 million retirement.

The study found those yet to retire, aged between 45 and 65, underestimate the amount they will spend in retirement by £100,000, despite the vast majority believing they will either improve (36%) or maintain (48%) their living standards.

It said the average household will need to find an annual retirement income of £14,100 over and above the state pension to sustain spending levels in early retirement, or £30,900 for high-earning households.

The overall figure, which includes housing and education, is based on today’s money and was the “reality of life in Britain today”, Tilney said.

A third of under-30s’ outgoings are devoted to keeping a roof over their heads, compared to a little over a quarter among over-65s, while spending on leisure makes up just a fifth of under-30s’ spending but a quarter for those aged 65 to 74.