• 77 per cent of people are concerned about the cost of Christmas
• 52 per cent of adults think they spend too much during the festive season
• Spending time with family is seen as more essential to a good Christmas than giving or receiving presents

Brits will spend a total of £20,072 on Christmas over their working life, according to figures compiled by NEST (National Employment Savings Trust) and MoneySupermarket. That’s almost equivalent to an entire year’s gross salary for the average earner in the UK.

MoneySupermarket found that individuals plan to spend on average £445 each this year on Christmas, up from £437 the previous year. The research shows that younger people tend to spend the least, while spending peaks between 35 and 54. Over a working life of 50 years, it works out to almost a full year's salary for the average earner.

However, a new NEST poll found that, when asked what was most essential to a good Christmas, spending time with family topped the list (68 per cent), suggesting the best part of Christmas is free.

Work parties are the least favourite part of Christmas, with nearly half of people (48 per cent) saying they would happily avoid them. Other least favourite things include Brussels sprouts, with a third (32 per cent) saying they would willingly give them up, and Christmas stockings, which a fifth (21 per cent) would ditch.

The poll also found that the cost of Christmas is a worry for most people, with 77 per cent being 'concerned', a third being 'very' or 'extremely concerned' about how much Christmas costs them and half (52 per cent) agreeing they spend too much during the festive season.

Women are more concerned than men about how much they will have to spend this year. 37 per cent of women say they're worried about how much Christmas will cost them compared to just 29 per cent of men.

NEST has come up with five tips to help people manage the costs of Christmas, including dodging multiple work do's, streamlining stockings, recycling wrapping, sharing the Christmas cooking and choosing Christmas trees with future Christmases in mind.

Commenting, Helen Dean, Managing Director of Scheme Development at NEST, said:

'We're all looking forward to Christmas, this year and for many years to come. But it's shocking that it will cost many of us the equivalent of a full year's salary over our working lives. No wonder spending at this time of year is such a concern for so many families.

'Shaving just a little bit off the annual festive bill and focusing on enjoying time with family could mean more peace of mind now and big savings over the long term.

'Visiting friends and family and giving gifts is something to look forward to, whatever age we are. Watching the pennies each year could help us all put aside money for the future so we can make the most of lots more Christmases to come.'

Clare Francis, financial expert at MoneySupermarket said:

'Christmas shopping is a significant area of expenditure, particularly for parents with children under 18. Therefore it is important to take steps now and every year, to manage your finances in the run up to the big day - and beyond.

'A recent survey of MoneySupermarket visitors found, only 37 per cent will fund Christmas using disposable income this year with an encouraging 34 per cent planning to use their savings. Using a credit or store card was the next most popular option for one in ten.

'A credit card offering interest free purchases could be a good option for those looking for flexibility and an efficient way to spread the cost of Christmas. However, anyone taking up this option must ensure they are able to pay off the debt into the New Year. A cashback may also be good options for those looking to be rewarded for their Christmas spend.

'Finally, using vouchers and searching online for the best deals on gifts and other items will also help your money go further.'

Read NEST's top tips for a savvy festive season  to find out more.

About the research:
Using new research supplied by www.moneysupermarket.com, NEST calculated the total spend over an average individual’s working lifetime, assuming a state pension age of 68.

This was based on the following age brackets:

18-34 years

• Mean expenditure of: £377
• Number of years applicable: 17
• Total spend: £6,409

35-54 years

• Mean expenditure of: £442
• Number of years applicable: 20
• Total spend: £8,840

55-67 years

• Mean expenditure of: £371
• Number of years applicable: 13
• Total spend: £4,823 

For the survey NEST commissioned Populus to interview a random sample of 2,055 adults aged 18+ from its online panel between 16 and 18 November 2012. Surveys were conducted across the country and the results have been weighted to the profile of all adults. Populus is a founder member of the British Polling Council and abides by its rules. Further information is available at www.populus.co.uk

Two MoneySupermarket surveys used in the release, both conducted by Opinium Research LLP with a sample of 2,000+ UK adults. Surveys conducted in Nov 2011 and Nov 2012.

MoneySupermarket webpoll 2012

How will you cover the cost of Christmas this year?

• I'll dip into savings - 23.8%
• I'll use my disposable income - 37.4%
• I'll use my credit card/store card - 10.6%
• I'll have to use my overdraft - 3.3%
• I have been saving up all year via a savings scheme - 9.8%
• I'll borrow money from friends and/or family - 1.7%
• Unsure or don't know - 4.8%
• I don't celebrate Christmas - 8.7%

Total votes: 2662

Voting Ended: 06/11/2012

Key facts about NEST:

• From October this year, new workplace pension reforms that mean employers will have to enrol most of their workers into a workplace pension scheme that meets or exceeds certain standards, start to apply to the largest employers. They'll also need to make a minimum contribution for many of these workers.  
• NEST is a national defined contribution workplace pension scheme available to all employers to use to meet their new duties. It is designed around the needs of people who are largely new to pension saving, with clear communications, low charges and easy online tools and services. It is run as a trust-based scheme, on a not-for-profit basis, and has a legal duty to act in its members' interests.
• NEST has a public service obligation to accept any employer (whatever their size) who wants to use the scheme to meet their duties, and can be used as a sole scheme or alongside other pension provision.

www.nestpensions.org.uk

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