The cost of sustaining a living for retired people has increased 45% over the past decade and is nearly double the average pensioners income, research indicates.
A new report compiled by UK pension specialist Key Retirement Solutions (KRS), reveals the average pensioner’s income has only risen by 26%, from £11,440 to £14,404, since 1994, well below the average increase of contents within the so-called retirees' ‘shopping basket’.
While the cost of basic products such as food and prescriptions has only increased by 15.2% over the past ten years, the price of household costs including council tax and repairs/maintenance has skyrocketed to 101% and 88% respectively.
Traditional retirement past times, including travelling and gardening have also dramatically passed earning income averages, with gardening products up 146.2% and foreign holidays up 63%.
Dean Mirfin, business development director at Key Retirement Solutions says while most people will be concerned about the rising cost of living, those pensioners who generally have a fixed income are especially vulnerable.
He adds: “Today's retirees also expect more out of retirement and are likely to find reduced spending power more of a burden than previous generations.”
Earlier in the week, the government launched a national press advertising campaign to advise pensioners they might be missing out on an average £426 towards their council tax bills.
According to the government, some pensioners are missing out on a 100% rebate, while also being due arrears backdated to January 2004.
Council tax benefit minister Chris Pond says: “Some pensioners may wrongly believe, for any number of reasons, that they might not qualify for a council tax rebate, for example, because they live in a big house or own their home. If in doubt, there's no harm in checking – contact your local council to see if you are entitled.”IFAonline
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected