Empty nesters are no longer burdened by their offspring

So-called "early empty nesters" - 50 to 64 years old - are splashing out on new cars and travel, said Datamonitor.

Their spending power is much higher than other generations - and they are "living it up" at the expense of their children's future inheritance.

The rise of this "self-rewarding behaviour" is turning them into a powerful consumer force, it claims.

In 2003, the group spent �38.4bn on consumer goods, but this is set to rocket to �46bn by 2008 according to Datamonitor.

By then, there will be 8.5 million early empty nesters in the UK.

And their annual disposable income is expected to have risen 8.5% to �17,872 from �13,673 today.

Boomer bonus

Early empty nesters are able to treat themselves with day to day luxuries, and still splash out on big one-off purchases or "experiences".

Many Britons have owned their homes for 30 years and have benefited enormously from house price increases Andrew Russell report author

Analysts say this post-war baby boom generation has reaped the rewards of better job prospects, having their families early, and high house prices.

"Generally, the boomers are better paid than previous generations and have had their families early," Andrew Russell, the report's author, told BBC News Online.

"Their children have now left home early, relieving them of a huge expense," Mr Russell added.

And the strength of the UK housing market means British early empty nesters are enjoying more spending power than their European counterparts, the report said.

"Many Britons have owned their homes for 30 years and have benefited enormously from house price increases."

"In addition, Britons enjoy better occupational and private pension provision," Mr Russell said.

The prospects are less rosy for Britons in their 20s, 30s and 40s.

"The early empty nesters are certainly the lucky ones, they are enjoying the fruits of a golden age. Many younger people are up to their eyeballs in debt and have no pension provision, " Colin Jackson, a director of Baronworth Investment Services told BBC News Online

"What is more, they are having families later and may have to fund expensive tuition fees," Mr Jackson added.

Empty Nesters spending power UK �13,673 Netherlands �13,165 Germany �12,942 France �11,808 Italy �9,465 Source: Datamonitor (disposable income per head)

But the "spend now, save later" mantra will not last forever.

As the early empty nesters generation ages, health concerns and worries over money will constrain their high-living.

Once they reach 65 and become "late empty nesters" they will have smaller disposable incomes, living generally on their pensions and savings.

Your comments:

Absolutely. The "greedy grey" have made their money from generational speculation, mainly of the housing market, at the expense of today's youth.

Golf courses will be deserted in 40 years time, we'll all still be working Nigel Watson, Wimbledon

Over the last 25 years they have voted in successive governments that provide low taxes for them, so they can afford second homes in the south of France whilst forcing a "user pays" reality in education, after they had free education. This will be followed in the next 25 years, I think, by a big swing back to pre-Thatcherite socialism as all the baby-boomers retire and start complaining that their pensions aren't big enough. So today's youth like me will be straddled with education debt and then high taxes to fund a comfortable retirement for the baby-boomers. Thanks a lot.
Steve, London

I think things will get harder for those who follow. The currently "early empty nesters" are the ones (in general) who own a lot of investments. It's the current generation who are having to work harder for less, in order to fulfil companies financial growth commitments to these older investors. So, once the cycle is complete, the next generation of "early empty nesters" will not have the benefits of a job for life, little or no debt, or state support.
Nigel, UK

I definitely agree. I keep making this point to my mother who responds by saying that her generation did not have the standard of living my generation (I'm in my 30s) currently enjoys - high disposable income, travel, all domestic mod. cons. etc. However the position has simply reversed. Yes, my generation has more now, but we will have a lot less in the future. My generation will spend all that disposable income on trying to get (and stay) on the housing ladder. We will not enjoy the same stock market returns. Living costs are increasing. Pension provision will be pitiful with final salary pension schemes closing to new members. We will be paying off university debt for longer. There is no job security. I acknowledge we have a spend now, pay later culture, but notwithstanding that, given the huge sums required to retire on, or buy a house, I think my lot are stuffed. Golf courses will be deserted in 40 years time, we'll all still be working!
Nigel Watson, Wimbledon

They deserve their fun after years of hard work and going without Anna, Hornsey, UK

They had a hard time, being born in or just after the war. Good luck to them. Why should there be any bad feeling towards them? I know my parents are enjoying life again after we all moved out. I'll just have to see how it pans out in my lifetime
Tom, Slough, UK

This report makes it sound this generation may have done well through circumstance, but I'm sure there's some hard work and financial planning behind their relative prosperity. Our generation can also work to improve our future prospects. Just because I'm in my twenties doesn't mean I've haven't got any hope. I have a pension, my only debt is my mortgage and I won't be having children. Through taking responsibility for my future, I won't be joining this trend.
Claire, Bristol UK

Certainly when I bought my first three bedroom house the cost was about four times my yearly salary. I think the ratio is higher now so it is harder for people currently aged between 25 and 35. However, whether the housing market will continue to boom remains to be seen. The only advantage to those who have been lucky to own their own home for the last 30 years is through downsizing - they sell to cash in on the larger price differences. The only real winners are the estate agents.
Doug Fowler, Portsmouth, UK

Many of my friends and colleagues are experiencing difficulties "emptying their nests". Their children are going to university and then coming back to live at home, either because they can't immediately find employment or the employment they find does not allow them to live independently. Often adult children stay at home until they can afford to buy a home of their own, and with spiralling house prices this can be a long time
Alison, Leicester

The generation now in their 50s and 60s are definitely reaping the benefits not only of a 'golden age' but also the rewards that come from living within their means. The generations behind them have largely been in complete denial on how to handle their long term finances and unfortunately probably won't wake up to the harsh realities until it is too late.
David, Farnham, UK

My parents, in their late 50s, are having a ball - golf, walking holidays and weekends away with their friends. Good on 'em! When my brother and I were children they budgeted well in order to make sure we didn't go short, and to save to help us at university. My parents never went out for meals or bought expensive clothes, and our family holidays were staying in a caravan. I'm really pleased to see them enjoying life now - they deserve their fun after years of hard work and going without.
Anna Hornsey, London, UK

Perhaps there is a lesson to be learnt here. The so-called "early empty nesters" didn't have the luxury of overdrafts and credit. If they wanted something they had to save for it first. If our generation took heed and stopped paying for everything on credit, then perhaps we would be able to save for our retirement. Its just too easy to blame someone else for your predicament.
Dave Godwin, Tewkesbury, UK

People in their 60s are not the "baby boomers". Our pension funds have plummeted to nothing with the drop in both the stock market and annuity rates. We were dumped from jobs in the 80s to make way for youth and our mortgage policies are leaving us facing a bleak old age because of the shortfall. Some "baby boomers" will do nicely when their parents expire and leave them expensive homes and this is the problem. The gap between the haves and have-nots will grow ever wider and not be related to effort or talent.
David Butterfield, Keighley W Yorkshire

I guess my wife and I are two of those early empty nesters but we have brought up three children with a good education and who all have good jobs. My wife and I are now saving for a decent retirement and no doubt will have to pay considerable sums in retirement home fees later in life as we would not want to burden our children with the cost. Even after that I suspect our children will inherit a useful sum of money when we die so they will also benefit from our good fortune to have lived during the last 60 years or so. We have earned all we have except for the increase in house value which, of course, we could not control. We have both had good jobs all our lives and paid huge amounts of tax so the so called free education we and our children enjoyed was not particularly free. Incidentally we have also lost considerable sums with Equitable Life and other investments so it is not all one way.
Roger Dingley, Maidenhead

We fall into this category, having chosen to have both our children at a relatively early stage in marriage. Both have flown the nest - but, and it's a big but - we are having to fund the cost for our youngest to live independently in a one-bedroom starter home. A low wage means that it was only possible to obtain a 90% mortgage backed by a 100% guarantee from us. The cost of mortgage repayments plus a top-up for living expenses will fall on us until wages rise. So, we are not entirely free yet. I challenge the claim that people like us have merely been 'lucky' as some of your respondents say. We had to scrimp and save for a long time during the early years (60s & 70s) and it is only through prudent financial management that we are now "reaping the benefits". The present generation might think they have a hard time of it, but there are so many of them who squander money on frivolous, expensive "must-have" items that it is quite clear they have little sense of priority and are then self-deluding enough to seek to blame others for their own inability to make ends meet. Outstanding!
Dave, Southend on Sea, UK