The idea that older people splash their retirement cash on leisure and holidays is just a myth, according to new research by the International Longevity Centre – UK and Prudential. The report found that: Consumption falls during retirement: A household headed by someone aged 80 and over spends, on average, 43% less than a household headed by a 50-year-old. Many older households continue saving throughout retirement. Individuals aged 80 and over are saving, on average, around £5,870 per year. ILC-UK calculates total per annum savings made by those in retirement in the UK today of around £48.7 billion. This equates to 2.8% of GDP. The majority of savings made by older people are sitting in low interest current accounts. On average, retirees think they have a 70% chance of leaving an inheritance of £50,000 or more. Contrary to popular perceptions, retirement does not lead to more holidays. However as we age, time at home alone increases while time spent with family and friends falls.