Inflation putting pressure on older generation

21/11/2011

Older people are much more affected by rises in inflation than the younger counterparts, new research has revealed.

According to a study carried out by the Alliance Trust Research Centre, those over the age of 65 are faced with an inflated rate of 5.8 per cent after the release of October’s figures.

People over 75 tend to spend almost ten per cent of their income on gas and electricity bills. The rising cost of fuel means that this figure is only set to increase as the weather starts getting colder.

Linsey Thomson, senior economic analyst for the Alliance Trust Research Centre, said that older people are faced with “disproportionately” high inflation. He said: “These high levels of inflation come at the same time as muted wage growth, meaning that households of working age continue to suffer a loss of real earning.

“This is eroding purchasing power and leading to a subdued outlook for consumer spending.”

Gordon Morris, managing director of Age UK Enterprises, said, “We have to recognise that... as we see more people live into their 80s, 90s or to being over 100, action has to be taken to help them plan ahead to protect and maximise their income.”

Tags; Current UK Economy, Retirement Money Problems,

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