Smaller spending reductions by over-55s

THE OVER-55s appear to be weathering the storm of the recession better than their younger counterparts, according to the Central Statistics Office figures.

While a high proportion, 64 per cent, reported a decrease in spending, it is substantially less than those households in the 18-54 age category, where 88 per cent have made at least one cutback.

Indeed, spending on clothing and footwear has held up particularly well among the older age category, with just under half (49 per cent) of these households reporting a decrease in spending compared with three-quarters of those in the 18-54 age group.

Those in the older age category are also spending more on groceries.

While younger people have cut back substantially on groceries, with 64 per cent of those aged under 35 now spending less on their weekly shopping bill, just 42 per cent in the over-55 category reported a decrease in spending.

Not surprisingly, given their age profile, the over-55s are holding on to their private health cover despite the downturn, with just 9 per cent reporting a cutback in this area compared with 20 per cent of respondents in the 35-54 age group.

The over-55s are also eating out and spending more on entertainment.

According to the survey, 38 per cent in this category have cut spending on going out, while almost three-quarters of those in the 18-34 category are now going out less.

Similarly, fewer than one-third of the over-55s reported changing their foreign holiday plans due to the recession, compared with 60 per cent in the 18-54 age group.

While 10 per cent of the over- 55s reported missing or delaying payment of a household bill, 31 per cent in the 18-34 category reported doing so.

However, the differential narrows when it comes to savings. Thirty-eight per cent of the over-55s have spent some, or all of their savings due to the downturn, compared with 50 per cent in the 35-54 category.

Moreover, 54 per cent of the over-55s, compared with 68 per cent of households in the 35-54 group, have reduced the amount they are saving.