How much will YOU spend in your lifetime? New report reveals the REAL cost of living

How much will YOU spend in your lifetime? New report reveals the REAL cost of living

How much will YOU spend in your lifetime? New report reveals the REAL cost of living


The average cost of a lifetime in Britain is almost £1.68million, a new report analysing costs from birth to death claims today.

Thanks to high inflation in recent years, the total has gone up from £1.54million in 2021 – an increase of around £140,000. 

A typical British person’s lifetime will cost them £1,675,399 to be precise, according to research by Atom Bank, which is £32,000 more than the average worker would earn in total over their career. 

Back in 1971, a typical lifetime cost a fraction of what it does today at £81,453, Atom calculated.

Expensive: According to Atom Bank, the average British person's lifetime will cost them a total of around £1.68million - with big contributors including holidays, homes and their children

Expensive: According to Atom Bank, the average British person’s lifetime will cost them a total of around £1.68million – with big contributors including holidays, homes and their children

The most expensive contributors to the cost of the average life are buying a home, raising children and holidays. 

In the past 50 years, house prices have surged 5,704 per cent. This year, the average house costs £299,000, which is over eight times the average salary of £34,963, and up £32,258 from 2021 data, Atom Bank said. 

Raising a child costs around £287,570 per child for a lifetime, according to the research. This is up £118,411 from 2021, highlighting the impact of inflation.

According to the research, holidays comprise £198,093 of our lifetime spend. Britons, the data suggests, will spend an additional £90,876 more on holidays in their lifetime than when the figures were last calculated in 2021. 

The research claims Britons will spend around £140,533 in their lifetime on birthday presents and Christmas. 

However, many people have reported spending much less on gifts in recent years as they struggled with rising bills.

Prices rose by 2 per cent in the year to June, unchanged from May, which was the lowest figure for almost three years, recent figures from the Office for National Statistics showed.

Interest rates remain at 5.25 per cent, but the Bank of England is expected to start cutting the rate later in the year.  

Working from home cuts transport costs 

It will come as no surprise to regular commuters that transport costs comprise a sizeable portion of many people’s lifetime spend. 

Based on recent data, Britons will spend around £101,990 on transport in their lifetime. 

But the rise in hybrid working and working from home means lifetime spending on transport is likely to be £36,658 less than would have been the case in 2021. 

The cost of owning a pet has risen seismically in recent years. Atom Bank claims the average person will spend £54,608 on their dogs and £33,300 on their cats throughout their life. 

This means if an individual has a cat and a dog, their lifetime spend on pets could be around £87,908. 

Cat costs: Feline friends now cost the average Briton £33,000 across their lifetime

Cat costs: Feline friends now cost the average Briton £33,000 across their lifetime

The highs and lows of life can also be costly. 

On average, Britons will each spend around £13,500 on weddings in their lifetime, with divorce costs also adding to expenditure in some cases. The cost of weddings and divorces can, however, vary significantly and be much higher and lower than quoted. 

The lifetime cost of eating out, will, for the average Briton, come in at around £47,705, compared to £3,979 for a lifetime from 1971, Atom Bank said. Many service sector businesses have been forced to increase their prices amid higher costs. 

Compared to 2021 data, Britons are spending more in a lifetime overall, but have cut back in certain categories as a result of the ongoing cost-of-living crisis and  high inflation during the last few years.

The average lifetime spend calculations were based on an average UK life expectancy of 81 years, Atom Bank said. 

Surging : The most expensive contributors to the cost of the average life are buying a home, raising children and holidays, Atom Bank said

Surging : The most expensive contributors to the cost of the average life are buying a home, raising children and holidays, Atom Bank said

How to cut your lifetime cost 

Aileen Robertson, head of savings at Atom Bank, had the following advice for spending less and saving more. 

The average cost of a lifetime in 2024 is now £32,000 more than what the average Briton earns in a lifetime.

This makes it key for people to have a considered approach to their finances, in order to maximise returns on savings and live comfortably.

In general, we’re more likely to stick to habits that challenge and excite us and it’s no different when it comes to saving. 

To keep things exciting, try taking on a different savings challenge each year. A good one to start with is the ’rounding up challenge’, where you round up all your purchases to the nearest 50p or £1 and save the difference – it all adds up.

Another fun one is the 1p challenge, which lasts a year but will see you save £667.95 (not including interest) by the end. On day one, you save 1p, then 2p on day two and 3p on day three, building up until you’re saving £3.65 on the last day.

The cost-of-living and rising inflation has no doubt had an impact on finances, but you can make sure what money you can save is working as hard as it possibly can for you. 

Finding a bank that offers you a competitive interest rate can gain you more money without you having to work for it. And the more interest you earn, the more you can reinvest. It’s a perpetual net gainer for your money and a safe investment for the savvy saver.

Additionally, whether it’s for your broadband, your gym membership or phone bill, shop around for the best deals; renegotiate your contracts if you’re coming to the end of them, don’t let your memberships roll over without having a good look at what’s out there.

 

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