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Elderly people are saving two thirds of their income

Grandma's thriftier than we thought

Turns out grandparents are thriftier than economists thought they were, saving the vast majority of their pension to be passed onto future generations.

What it means: A think-tank called the Institute of Fiscal Studies did a study into spending patterns in people between 70 and 90. There's been a change to the pension system recently which gives elderly people more control over our they spend their money.

Some were concerned this would lead to reckless splurging (picture economists worrying about grannies partying it up on old people's homes) but in fact, they're spending so little that analysts are now concerned it's not enough (loosen those purse strings Granny).

People aged 70-90 have an average of £185k in housing wealth (i.e. they own a property worth about that much) and 33k in savings, excluding pensions. That transfer of wealth to the next generation will be one of the biggest resource distributions we've seen – and how the next generation chooses to spend it will have hue effects on the one coming after.

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