How spending can affect our happiness: the latest findings
Part of the Life Well Spent Report 2026
Money may not be able to buy you happiness, as the saying goes. But, having enough to live comfortably can make a big difference.
But are there certain spends that make us happier if we prioritise them? And what would we most like to splash out on if we came into some cash?
To help answer these questions and explore the connection between happiness and spending, look no further than the Life Well Spent report.
Every year, SunLife asks people over 50 to share their attitudes to money and what big purchases they’ve made. The report also looks at the purchases they would like to make if money was no object. It delves into:
- Happiness
- Retirement
- Daily spending and financial concerns
- The home
- Holidays
- Cash gifts
- Debts
- Funeral planning
- Equity release
“The Life Well Spent report explores what later life looks like for people over 50. From their hopes and ambitions to the financial challenges they face,” says Mark Screeton, SunLife CEO. “This year, our nationally representative research adds to these findings, giving context on what matters most in life. Read on to discover what’s on the minds of over-50s across the UK, and what helps them live well.”
Report background
The Life Well Spent research was undertaken between June and July 2026 by Critical Research.
2,667 online interviews were completed, overall, with 2,016 nationally-representative interviews and a boost of 651 over 50s – resulting in 1,556 over 50s, in total, across the dataset.
For the over 50s, 45% of respondents are retired, and 26% are in full time employment. 67% own their own home.
Of the UK adults, 21% of respondents are retired, and 43% are in full time employment. 55% own their own home.
Family and friends matter most
People become happier as they age, with retirement emerging as a major wellbeing boost. More than half (52%) of retirees rate their life satisfaction at 8 out of 10 or higher, compared to 33% of those still working or semi-retired. Similarly, 53% of people aged over 70 report high life satisfaction.
“Happiness does vary from region to region across the UK for over 50s,” says Victoria Heath, SunLife CMO. “Northern Ireland and East Anglia come out top, while the South West is at the bottom of the list.
“But it’s great to see that around 36% of over 50s feel very happy about the future, with those aged 65 to 74 the most optimistic.”
40% of over 50s say family and friends are the biggest contributor to their happiness – rising to 46% for the happiest over 50s.
Over 50s would retire earlier if they could
While 42% of over 50s still rate their life satisfaction as an 8, 9 or 10 out of 10 (41% in 2025), 6 in 10 over 50s (63%) would retire early if money was no object (65% in 2025), and they tend to express a greater desire to retire than the rest of the population.
Those over 50 who score happiest spend 37 minutes less per week working or volunteering, 30 minutes more with family and friends, and 40 minutes more in nature than average.
Meanwhile, the least satisfied group spends the least time outdoors, averaging just 3 hours 54 minutes a week in nature.
While costs rise, the number of those who say they have no financial worries is also higher
The rising cost of living continues to be a worry for over 50s, with 63% naming it as their biggest financial worry, after a drop to 55% in 2025. Almost three-quarters (73%) of over 50s have seen their energy bills increase in the past year, and food costs remain a major challenge, with 64% of over 50s spending more on their weekly shop.
“While concerns about unexpected costs and unexpected expenses are still on many people’s minds,” says Mark Screeton, “there are also positive signs. The number of over 50s with no financial concerns has doubled from 9% last year to 18% this year, which is more than the national average of 13%.”
Home improvements don't need to be big to boost your happiness
For over 50s, just under 9 in 10 say that investing in garden landscaping and a new bathroom made them happier. Over 8 in 10 over 50s say these improvements made them happier, and 31% of over 50s would get a new kitchen if money was no object.
The good news is that the percentage of those who love their home and don’t want to move but might have to is down from 25% to 22% this year. Half (48%) will be staying put.
"Thankfully, we don’t have to pay for an extension or fancy new kitchen to boost our happiness,” says Victoria Heath. “On average, garden landscaping improved happiness for 89% of over 50s who did so, and even painting or decorating improved happiness for 76%.”
Travel confidence is low for some
Holidays are important to all of us, with almost 9 in 10 of the happiest people over 50 going on holiday every year. People over 50 spend, on average, £797 when going on holiday in the UK, and £2,796 to go abroad, both lower than the national average.
Over 50s expect their dream holiday to cost an average of £6,094, although a third don’t think they’ll ever be able to afford it. But their top dream holiday destination is the USA.
Despite holidays being a big contributor to our overall happiness, over 1 in 5 of over 50s (22%) choose not to travel because of a health condition. However, of those who get travel insurance, almost 4 in 10 (37%) over 50s say they would feel very confident making a claim.
“Our research shows that those who take regular holidays tend to be among the happiest. But, unfortunately, health concerns and rising costs mean some people are travelling less than they’d like.” says Mark Screeton. “Still, the desire to explore new places, spend time with loved ones and create lasting memories remains as strong as ever, with 3 in 10 of over 50s confident they will be able to afford their dream holiday one day.”
Many are gifting to help cover smaller expenses
Over 50s are more generous and gift, on average, £14,017, typically to help children with house deposits. This year, helping with living costs is the most common reason over 50s gift money.
1 in 4 over 50s (26%) have given substantial cash gifts to loved ones in the last five years, however this number rises to 30% (+3% since 2025) for the happiest over 50s.
Plus, while only 6% of UK adults gift to family to help pay for a funeral, nearly half of givers are helping their parents (46%) to pay.
“While we are used to seeing family members gifting cash to children or grandchildren,” says Screeton, “it is interesting to see how younger generations are gifting to help their parents pay for a funeral, showing the desire to help with end-of-life planning across generations.”
With loved ones clearly being the most important factor for so many, it’s no surprise that gifting family money makes people happier – whether it’s for house deposits, a contribution towards a vehicle, or a contribution towards a wedding.
"While the ‘Bank of Mum and Dad’ helps children have a better future through education, it’s interesting to see how many gain happiness from gifting money to other family members who wish to start a business and strike out on their own,” continues Screeton.
This may also explain why so many would like to leave an inheritance behind (46%, same as 2025). And just 17% said they would prefer to spend their money enjoying retirement, compared to 19% in 2025.
Over 50s pay £600 a month in debt repayments
Over half of UK adults (56%) have outstanding debts. The burden falls heaviest on younger generations, with 65% of under 50s in debt.
However, 54% of over 50s don’t have any debts, with over 50s much more likely to have paid off their debts in the last five years, significantly improving their happiness in the process.
People over 50 with outstanding debt are spending a total of £600 per month on repayments on average, equivalent to 20% of their total annual household income. Mortgages remain the biggest monthly financial commitment. Homeowners over 50 with a mortgage are paying an average of £732 a month.
Over three-quarters (77%) of plan holders over 50 say buying a funeral plan did not affect spending elsewhere
More people are planning ahead for the future, with 1 in 10 UK adults (11%) already having a funeral plan in place. This rises to 17% among over 50s and nearly 1 in 4 over 70s (23%), making older adults the most likely to have acted.
The research also suggests a link between planning and happiness. While 14% of the happiest people already have a funeral plan, a further 30% intend to buy one within the next five years, compared with 23% of the least happy respondents.
This indicates that those with higher wellbeing may be more likely to think ahead and make practical end-of-life arrangements.
What’s more, 77% of over 50s who have a plan said that buying one didn’t affect their spending in other areas at all.
“Planning for the future and your end-of-life plans is important. In fact, it’s good to see how early people are considering their funeral plan,” says Heath. “When looking to those yet to buy a plan but who intend to in the next five years, 40–49-year-olds take the lead at 36%. But even 21% of 18-29-year-olds say they are planning to buy a plan in the next five years.”
People would like to release just under £80,000 of equity
Awareness of equity release is high, but understanding remains low. Nearly 4 in 5 over 50s have heard of equity release, and 88% of retirees. Yet only 7% know all the key facts, suggesting a significant knowledge gap despite widespread awareness. But the good news is, 70% of those who've released equity say it's made them happier, and 42% say it made them significantly happier.
On average, eligible people who'd consider equity release in 2026 would choose to release around £78,650. They'd like to spend at least some of the money on travel, home improvements and supporting family. In fact, those choosing family financial support would consider offering, on average, £32,614.
But people who have released equity typically access £68,169, around £10,000 less than those in the consideration stage would like to access. Home improvements are the most common use (51%), followed by paying off debts (38%).
“For many over 50s, their house is their biggest financial asset,” says Screeton. “Our research shows that many value supporting their family and use equity release as a way to do this, as well as home improvements and travel. In fact, the amount people would put towards family financial support has increased significantly in the last year. While equity release is not the right choice for everyone, it can offer homeowners flexibility to enjoy early retirement or help a loved one.
Perhaps it is no surprise that 70% of people who have released equity say it made them happier.”
Find out more
You can read the full 2026 Life Well Spent report here.
The Life Well Spent report is now in its fifth year. For information on any of SunLife’s current reports or past editions, email pressoffice@sunlife.co.uk.
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This article forms part of our Life Well Spent report, which looks at the relationship between happiness and big purchases in later life.