Over 50s splash the cash for Santa

Despite the tough economic times, todays over 50s are determined to make Christmas 2012 a real cracker.  For many, this Christmas is going to be bigger than last, as a quarter (24%) say that they will be spending more this year, this rises to 31% of those over 75. In total the over 50s are spending on average £235 on presents for close family, with £35 being spent on their parents, £71 on their spouse, £70 on their children and £59 on their grandchildren.

For the over 50s, funding the festive season appears to be all about forward planning. A third say they will use their savings, in fact one in ten say they have a specific account for Christmas spending.  A third (31%) claim that they have paid for everything before Christmas this year. 

Half of over 50s plan to use their credit or store card to pay for Christmas. One in 20 over 50s say they will go on to be spread the cost of Christmas throughout the next year.  A quarter of over 50s will devote their November salary or pension payment to pay for presents in 2012.

Despite planning their finances carefully, the over 50s are still prone to overspending - 36% say they spend more than they should at Christmas and this is much more the case for those aged 50-54 - 46% of this age group say they spend more than they should .

On the whole, the over 50s feel that Christmas has become too materialistic (88%) and 44% say they sometimes feel they buy presents out of obligation rather than generosity. Perhaps because they are more under pressure financially or because they still have work colleagues on their Christmas list, younger over 50s are more likely to feel this way - with 55% of 50-54 year olds saying they obliged to buy presents.

Roger Ramsden, chief executive, Saga Services, commented: "The over 50s ability to manage their finances and plan ahead has left many in a position to be more generous at Christmas this year than last.  Let's hope family members also plan ahead and ask them what it is they want for Christmas this year.  Granny might want a tablet computer rather than bath salts this yuletide."

For more information about Saga Savings, visit saga.co.uk.