Retired Brits cut back to buy ‘tasteless’ Christmas presents

Millions of retired people across Britain will be pushing their finances to the limit this Christmas to buy presents that are barely valued by the recipients, according to a new report from AXA. Nearly a million retirees will even put themselves at risk by skimping on heating and energy bills to allow them to afford unloved presents.

The first tranche of research to be published from AXA’s global Retirement Scope Report 2007 uncovers the truth behind the Christmas smiles, and shows that far from treasuring presents from Granny or Granddad – many of us are actually recoiling at the prospect of this year’s gift selection.

Retired people will be spending, on average, £346 each on Christmas presents this year – a rise of £54 since the first AXA Retirement Scope Report in 2004.

This means that Christmas present spending works out at more than two weeks’ full income for a single female pensioner.

The rise in spending among retirees differs sharply from that of their working counterparts. Almost 8 in 10 retired Brits (78%) have to plan ahead and stretch their limited finances, saving up every month to buy Christmas presents for their family. However, among those that are still at work, the amount they plan to spend on Christmas presents this year has fallen from £600 per head in 2005, to £531. The average worker spends eight days of annual salary on Christmas presents.

These factors all contribute to Britons being in the top three of the 16 countries surveyed for rating Christmas as a period of stress. A third (33%) of retired people questioned said that Christmas was a time of stress for them.

Pat Brady of AXA said: “Christmas finances are a tricky area, and whether you’ve saved for months or buy on impulse, like everything else in life a little financial planning goes a long way. Whatever stage you are at, planning for family and calendar set pieces such as birthdays, anniversaries and Christmas is important and really benefits from a bit of attention.”

“No-one likes to think of an elderly relative shivering in the cold so that they can afford a present that isn’t valued by the family member. But I wonder how many people think of the sacrifices that their older relatives make in order to be able to afford a gift.

“If pensioners still want to spend so much of their budget on presents, it makes sense to get it right. It just doesn’t make sense trying to second guess everyone’s developing tastes. You’ll waste your money, and they’ll force a smile before binning the present when your back’s turned.”

Christmas cutbacks by retired people

The sacrifices made by retired people in the UK in order to afford gifts at Christmas may come as a surprise to family members:

25% say they forego new clothes to buy presents
21% skip getting hair or beauty treatments during the festive season
17% socialise less
15% avoid filling the shopping trolley with special Christmas food treats
8% say they cut back on heating or energy bills

AXA’s CHRISTMAS PRESENT GUIDE FOR GRANDPARENTS

1. Before you buy children or grandchildren clothes – have you discreetly checked the size you should be getting? Where do they normally buy clothes – go to the same shop – they obviously like it.

2. If you are buying CDs, books or DVDs for grandchildren – ask them which one they want from you. Don’t try to guess.

3. If buying perfume or aftershave – have a peek in the bathroom cabinet to see which bottle is regularly used. They like that scent so they’ll thank you for buying a new supply.

4. If you’re giving socks or pants – go for plain colours for ‘him’. Wacky Xmas socks with cartoons will never see the light of day.

5. Alcohol can be a favourite gift – but stick to what you know will be drunk. Again don’t try to guess that this year they’ll fancy a bottle of Absinthe when they usually drink pints of mild.

6. Children have a habit of growing up quickly – they might have been Man Utd fans 3 years ago – but when you weren’t looking they started to follow Chelsea. The new Man Utd kit will go unworn and you’ll be written off as silly.