Pensioners face 60% spending hit from inflation

According to Prudential, inflation for retired people, dubbed ‘Silver RPI', is higher than the standard figure because pensioners spend more on goods and services such as food and fuel, which are subject to the highest rates of inflation. The research from the insurer shows the average person retiring in 2011 expects an annual income of £16,600, but if that income remains fixed it will be worth just £6,700 in today's money in 20 years' time if inflation remains at its current level. Silver RPI has averaged 4.6% per year since January 2008, according to Age UK, compared to the average ...