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Cost of living for pensioners has soared to 20%
03/01/2012
A recent study has revealed that the cost of living has soared by more than 20% for pensioners since the 2008 credit crunch commenced.
According to Saga pensioners over the age of 75 are worst off and in only four years inflation has accounted for 20% of their income.
The reason why it impacts the older generation more is because a greater proportion of their income is spent on energy and food bills, the two areas that have experienced the highest price rises. Pensioners are also likely to have taken out annuity schemes, which provide a fixed monthly income for retired people, based on the value of the annuity on the first month of claiming.
Annuity rates have fallen dramatically over the past 20 years. A pension pot of £100,000 buys an annual income of £5,720 compared to £14,000 which would have been available to them in the early 1990s.
Homeowners aged over 55 years who have been affected by the downturn in the economy and would like to know how much money the value of their property could release to increase their income, can find out by contacting therightequityrelease.co.uk for equity release advice.
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