Life begins at 55

Financial freedom begins in the mid-fifties according to Birmingham Midshires’ latest Life 2 report.

The saying goes that life begins at 40, but this well-known adage is actually 15 years off the truth, according to a new report out today from Birmingham Midshires, a leading savings provider in the UK.

Birmingham Midshires’Life 2 campaign, which explores issues affecting the over 50s, has found that 55 is the age at which people discover their financial freedom and embark on their second life, free from some of their most pressing financial strains.

When quizzed on the financial burden posed by children, Birmingham Midshires found that, in their early 50s, almost a half (47 per cent) of the respondents still have children living at home and are still supporting them financially (49 per cent). Past the age of 55, however, just one in six of respondents have children still living under the same roof and three quarters no longer need to provide financial handouts to their offspring.

Shaking off mortgage responsibilities also starts at the age of 55. Birmingham Midshires’ figures reveal that while 41 per cent of those in their early 50s are still saddled with a mortgage, this figure halves to one in five (22 per cent) of those aged 55 and over.

Furthermore, more than half of respondents (55 per cent) in their early 50s are still working the nine to five grind, whilst 23 per cent of those aged over 55 have given up full time work.

Jason Robinson, Director of Savings Operations at Birmingham Midshires, commented on the findings: “After years of bringing up children and working hard, those in their 50s can look forward to a more relaxing way of life, with fewer financial strains.

The saying goes that life begins at 40 but it is interesting to see our research indicates otherwise. This could be down to a number of economic and social factors, such as rising house prices and people having children later in life, all of which take their toll on the age of financial independence.”

Other key findings:

Capital city house prices are taking their toll as the over 50s in the London area are most likely to have children still living at home (33 per cent)

This contrasts strongly with parents aged 50 or above in the South who are least likely to have children still living at home (15 per cent)

Children acting as a financial drain on parents are most prevalent in East Anglia with almost half of respondents aged 50 and above still providing handouts

Teaching their children to fend for themselves, just one in five Scots aged 50 and above are still providing financial help to their children

Traditionally know to be careful with their money, Scots aged 50 and above are most likely to have paid off their mortgage in their fifties (80 per cent), compared to 62 per cent of people in East Anglia