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Costs for pensioners up 36% since 1998


07/07/2008 17:27:00

The latest research has shown pensioners are paying over a third more for goods and services than they were ten years ago.

Calculations from Clerical Medical show the rate of inflation growth for goods and services is not keeping pace with retail price inflation, which stands at an increase of 32 per cent.

Housing costs were found to have increased by 69 per cent over the past decade, representing a "key factor" in the figures as, at 25 per cent, expenditure for housing is the largest single expense for retirees.

Martin Ellis, chief economist of the organisation, said: "Higher housing costs have been the key factor behind rising living expenses, accounting for a quarter of the total average weekly expenditure of a typical pensioner household."

The news comes after a study from Liverpool Victoria Life Company showed seven million people over 50-years-old are "confused" about planning for retirement due to changing legislation.



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