Retirement hobbies set to outstrip inflation
The cost of your hobbies is likely to outstrip inflation by the time today's workers reach retirement, new research has found.
Around 40% of retirees spend up to 1,248 hours a year pursuing their pastimes but a survey by Friends Life found that the costs of these pursuits are likely to increase significantly by the time today's 35-44 year olds near retirement in 2042.
The cost of a round-the-world ticket could increase from £1,748 today to £7,778, while playing golf is expected to cost on average £1,834 per year in 2042 up from £918 today.
The cost of cooking as a hobby is set to rise by 49% while hiking will go up by 61%.
The figures have led to Friends Life to urge people to make sure they plan ahead for their retirement to ensure they are financially able to take part in what they enjoy most.
Colin Williams, managing director of corporate benefits, Friends Life said: "As a nation we expect to spend far more time on our hobbies in retirement yet research shows this may not be affordable by the time we get there due to costs soaring far above inflation.
"Of course, not all of us expect round-the-world trips in retirement but we do all hope to be able to afford our favourite pastimes. This is why it is essential to act today and review your finances, putting plans in place to afford the future you hope for."
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).