Britons in their 50s whose children have left home spend more than £38bn a year on luxuries such as fine food and wine and leisure activites, a report revealed today. 

If current trends continue, the figure will rise to nearly £46bn over the next five years. By 2008, an estimated eight million people in the UK aged between 50 and 64 will have a yearly disposable income of £17,872 - the highest in Europe, and far above the average of £14,328. 

The study, by independent market analyst Datamonitor, found that people freed from the ties of their offspring and often at the peak of their earning power will splash out on lavish treats for themselves. 

The increase in availability of consumer packaged goods means people are not only spending money on travel, new homes and cars, but on plush versions of everyday items. 

"The rapid growth in spending comes as a result of increasing incomes coupled with people planning for an enjoyable and stress-free retirement and a strong desire to reward themselves both for raising a family and for a lifetime's work," said Datamonitor spokesman Andrew Russell. 

For the 9.5 million people over the age of 65 in the UK, however, the picture is less rosy. The reliance on a pension rather than an income means spending will be curtailed once again. Their annual disposable income is smaller than their younger counterparts - on average £10,800 - but still higher than the European average of £10,019. 

A Help the Aged spokeswoman said that the report demonstrated that the marketing industry must change its attitude towards older people. "For too long, advertising campaigns have ignored the older generation, believing they are too set in their ways to change brands or to simply splash out and treat themselves," she said. 

"But it is important to remember that the elderly in this country do not form one homogenous group. There are many different sectors of this part of our society and many old people are struggling to cope with a bleak future in which holidays and treats are just not on the agenda."