Black Friday blues? A third of shoppers regret their sale splurges

With Black Friday behind us and the sale season in full swing, many shoppers are seizing the opportunity to find pre-Christmas deals. But for many, the excitement of sale season can quickly fade. New research from Standard Life reveals that nearly a third (31%) of those who have taken part in the Black Friday or Cyber Monday sales have regretted at least one of their purchases.

When asked why they felt regret, a third (33%) said they only bought an item because it was discounted, while a similar 32% admitted they didn’t really need it. Nearly one in five (17%) never used or wore what they bought, and 14% confessed they couldn’t really afford the purchase in the first place. 

Short-term bargain, long-term regret?

While the discounts can be tempting, Standard Life’s research reveals the impact on individuals financially: 

• One in six (16%) say they’ve wasted £500 or more on items bought in a Black Friday or Cyber Monday sale that they didn’t need or later regretted 
• A quarter (25%) admit to wasting over £250 
• Almost half (48%) say they have wasted over £100. 

This spend takes its toll over time, with over two fifths (42%) of shoppers saying short-term impulse spending during sales periods is impacting their ability to save for the future.

The potential Black Friday pension boost

Standard Life’s analysis demonstrates how individuals who chose to divert their Black Friday spend into their pension on an annual basis could see a notable uplift to future retirement savings. It found that someone who began working with a salary of £25,000 a year and paid the minimum monthly auto-enrolment contributions (5% employee, 3% employer) from the age of 22, could have a total retirement fund of £210,000 by the age of 68, adjusted for inflation. However, someone who chose to divert £500 into their pension each year, instead of spending it in the Black Friday sales, could increase their overall retirement fund to £238,000 by the age of 68 in today’s prices – almost £30,000 more than if they spent the money in the sales. 

*assuming 3.50% salary growth per year, and 5% a year investment growth. Figures allow for 2% inflation. Annual Management Charge of 0.75% assumed. The figures are an illustration and are not guaranteed. Earning limits not applied. 

Smaller amounts also have an impact. For example, someone who chose to divert £250 into their pension annually, instead of spending it in the sales, could increase their overall retirement fund to £224,000, while someone who makes an additional £100 contribution each year could see their pension rise to £216,000 – £6000 more than if this money had been spent in the sales. 

Mike Ambery, Retirement Savings Director at Standard Life said: “Black Friday can be a great time to find genuine deals, but it can also be a time of regret, when people spend on things they don’t really need or fall for promotional sales which aren’t actually any cheaper than other times of the year. Taking a step back and thinking about where that money could make the biggest long-term difference might be more rewarding in the end.

“If you do manage to bag a genuine bargain, one idea is to consider putting the money you’ve saved into your pension – it’s a simple way to turn a short-term win into a long-term benefit.

“Even relatively small, regular contributions can have a meaningful impact on your future finances. Redirecting your Black Friday budget into your pension is an example of how small contributions today can add up to significant benefits later.”