Abstract
This study examines the money management behaviour of a sample of older people most of whom have retired from a professional or managerial occupation and are now enjoying a financially comfortable 'Third Age'. By carefully managing their money throughout their life course and taking advantage of continuous well rewarded employment they have steadily increased their residual wealth which they are using to sustain middle class living standards in retirement. The sample of 48 individuals from 40 households in the south of England was divided into three cohorts bom before, during and after the Second World War. Using in depth qualitative interviews they were asked about their approach to money management in retirement and throughout their life course. The study found that all three cohorts, which included respondents bom in the 1930s as well as those in the first baby boom years of the late 1940s, demonstrated very similar behaviour in their approach to consumption and wealth acquisition in retirement. Despite the austerity and rationing of their early life course as well as the class influence of their family of origin, all respondents had become debt free householders. Most had direct benefit, DB, pension incomes which had been paid for over 40 years of continuous compulsory contributions. They rejected the use of credit and conspicuous consumption but were meticulous in seeking the highest quality at the lowest price in their choice of consumer goods. All owned mortgage free homes and had acquired and retained their wealth through continuous saving and careful money management. They generally tended to share their wealth with their adult children, particularly for help with house purchase, but were aware that their house and savings could be taken from them in later life to pay long term care costs. This study of current ‘Third Age’ retirees contrasted strongly with the image of ‘carefree’ consumers spending their children’s inheritance, as portrayed by some commentators and particularly the popular press.