Grandparents and retirees are radically changing their spending habits and later life plans in response to the coronavirus pandemic.
A survey of more than 6,000 Which? members revealed that retiree spending is down 5% with the biggest cuts in areas affected the most by the pandemic.
Single retirees spent a fifth less on extended holidays, while recreation and leisure spending is down by 13% for couples and 14% for singles, according to the consumer group.
A survey of 2,000 UK grandparents by wealth manager Killik & Co reported that almost half of grandparents were taking acting action to make money due to COVID-19. A quarter were intending to sell items on eBay or Gumtree to boost their retirement funds whilst 10% were looking for part-time work.
This is because 58% of grandparents are worried about their retirement income.
In the last few months, one in seven grandparents have reassessed passing assets onto their grandchildren with 16% saying they have either decreased, or plan to decrease, the amount they will give to their grandchildren due to coronavirus.
Svenja Keller, head of wealth planning at Killik & Co, said: “The COVID-19 outbreak has led many to re-assess their future financial plans, and particularly their retirement income.”
A separate Which? report found that more than half of people yet to retire are worried about their pensions falling in value, while a quarter of those already retired are concerned about making their pension savings last.
Which? calculations reveal retired couples need an average income of £17,000 a year to cover spending on essentials — such as groceries and bills.
But those who are already generating retirement income via their own investments, including pension drawdown, are more exposed to the economic turbulence seen over the past few months.
Jenny Ross, Which? Money editor, said: “Perhaps unsurprisingly, the impact of coronavirus has seen retirees cut back on their spending in areas like travel and leisure this year, and there is clearly concern about how the economic instability may affect people’s savings."