Over 50s are some of the UK's biggest consumers

2010 will see the over 50s contribute an extra £524 million thanks to the VAT increase imposed from 1 January 2010.

The VAT rate returns to 17.5% from 15% and will be felt by consumers all over the UK, but today new research by over 50s insurer RIAS has calculated the huge extra financial contribution that will be made by the over 50s next year.

The over 50s are some of the UK's biggest consumers, outspending the younger generations by almost 13% each week, equivalent to £21, with the majority of their £179 expenditure going to food, drink, eating out, entertainment and hobbies. 

The RIAS research, conducted in conjunction with CEBR, found that over 50s will be spending £19 a week in VAT in 2010, compared with their 2009 bill of £18.52 per week. 

The 21 million over 50s made a net fiscal contribution of £6.6 billion to the UK public finances in 2008, defying the public stereotype of over 50s as being a drain on the economy.  The ‘Still Giving at 50' report, launched by RIAS in September, highlights that today's over 50s are active and substantial contributors to the UK economy. 

Janet Connor, Managing Director at RIAS, comments: "While the 2.5% increase in VAT may not sound like a huge amount, over a year it really does add up and bolsters the already substantial contribution the over 50s make to the UK public purse.

"There has been a longstanding public stereotype that the over 50s take more from society and the state than they put in.  However, this is just not true, with people over 50 contributing millions to the economy, as well as the positive societal contribution they make through their life experiences, outlook and knowledge. They're also more satisfied with their lives and they know what they want."