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Pensioners 'hit hardest by credit crunch'
15/07/2008 16:58:00
Pensioners are being hardest hit by the rise in energy, food and living costs, with their inflation increasing to 5.4 per cent, according to reports.
A study from Alliance Trust has found pensioners are being hit by the rises in the costs of basic goods and energy, due to this being what they spend a high proportion of their income on.
Food costs, which have increased by 11 per cent over the last year, account for 16 per cent of a pensioner's household budget, compared to nine per cent of those aged under 30.
In addition, pensioners spend seven per cent of their budget on energy, compared to the three per cent allocated by younger households.
Shona Dobbie, head of the Alliance Trust Research Centre, said: "Our study continues to highlight the extent to which inflationary pressures are hitting the elderly."
"Unfortunately, we expect little respite from this situation over the next couple of months as the oil price is expected to remain high and gas and electricity prices are expected to move higher," she added.
Recent figures from Clerical Medical show pensioners are paying over a third more for goods and services than they were ten years ago.
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