Your home costs £1.8 million during your life

House and coins

Running your home will cost you £1.8 million over the course of a lifetime, new analysis by Prudential of Office for National Statistics data has revealed.

The combination of mortgage or rent payments, fuel bills and council tax accounts for the largest single expense, costing £508,000 over a lifetime. And other taxes swallow up £385,000.

General household costs will cost you most when the head of your household is aged between 30 and 49 – when you'll be forking out an eye-watering £45,000 a year, mostly attributed to the cost of raising kids.

Meanwhile, pensioner household expenditure drops to £25,000 a year when the head of the household is aged between 65 and 74, and to £17,000 for those aged 75 and above.

Vince Smith-Hughes, retirement expert at Prudential, said: "These figures are startling, showing a gulf of more than £14,000 annually between income and expenditure in the early years of retirement if the householders rely solely on the basic state pension. This pays just £10,310 a year currently to the average retired household. To make up the difference, pensioners will have to dig deep into their savings or personal pension plans, unless they simply choose to go without."

He added: "Saving as much money as possible from early in working life is key to being able to supplement the State Pension and ensure sufficient income to live a comfortable retirement. Our analysis shows that the average household spends £230,000 on recreation and £128,000 on hotels over the course of a lifetime, so by tightening their belts a little people could afford to save more towards retirement."

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