One in six people are now spending more on their social calendars compared to 12 months ago.
Pub hack can boost UK households’ pension savings by £173,000(Image: )
UK households can give themselves a massive pension savings boost of up to £173,000 in retirement – but only if they ditch the pub.
Research from Standard Life has found that adults across the UK are parting with an average of £375 each month on social activities, which amounts to around £4,500 annually. One in six people are now spending more on their social calendars compared to 12 months ago.
The Standard Life study revealed that 46 per cent of UK adults have experienced regret over money spent on socialising. Costly nights out topped the list of regretted expenditures at 32 per cent.
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These were followed closely by dining at restaurants at 29 per cent and spending on alcoholic drinks at 25 per cent.
31 per cent acknowledged that their spending on social activities was preventing them from putting money aside for the future. By diverting social spending into retirement savings, someone starting work at 22 on a £25,000 salary, making minimum auto-enrolment contributions, would accumulate approximately £210,000 by age 68.
And squirreling away half of their annual socialising budget into their pension throughout their career could boost that figure to £383,000, representing an additional £173,000 at retirement.
Mike Ambery, the retirement savings director at Standard Life, part of Phoenix Group, commented: “January is often when people take stock and set new goals, so it’s a great time to think about balance.
“Spending time with friends is one of life’s great joys, and it’s not something people should feel pressured to give up.
“But as our research shows, many people do looks back and regret certain socialising costs whether it’s an overpriced dinner or a night out that didn’t feel worth it.”
“Prioritising spending on the things you really want to do, and considering redirecting even a small amount of the money you would have spent on the rest into your long-term savings, can have a powerful impact over time,” he said.
“With most UK adults currently under-saving for retirement, it’s worth considering where small changes could help build a more secure financial future.”