New Inflation Figures Released Set to Put Pressure on Retirees Households’ Finances say My Pension Expert

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The cost of goods and services that retirees use are raising at a much higher rate, meaning age related inflation is much higher than the official 2.5% recently announced.

My Pension Expert
MGM Advantage have reported that Britons will need to find a total of £24.5 billion to have the same lifestyle as last year.

Figures released show that inflation rose to 2.7% in October, despite slowly decreasing throughout the year, which will unfortunately pose many difficulties for households across the UK.

Significantly, they will need to find an extra £932 a year to maintain their current lifestyle. MGM Advantage have reported that Britons will need to find a total of £24.5 billion to have the same lifestyle as last year.

Even though inflation appeared to be dropping slowly previous to this sudden hike, a further inflation rise is likely due to the increase in energy prices. My Pension Expert have announced that this is putting more pressure on newly retired people as they are more likely to be at home when they finish work. Inflation is much more of a problem for this section of the community as the goods and services they buy are rising at a higher rate than the average basket of goods and services purchased for the general population. This age related inflation is said to be more like 7% at the moment and is hitting hard pressed pensioners the most.

Scott Mullen of My Pension Expert the annuity specialists said "With annuity rates at historic lows it is almost unaffordable in every case for a retiree to add inflation protection to their annuity. A retiree with an annuity quote of £10,000 per year would see their income drop to £7,220 per year initially, if they chose to have their income increase each year by 2.5%. If this option is chosen it would take 13 years for the income to grow to £10,000 an all the while each of the early years would be at significantly lower income meaning that it would take 22 years for a retiree to be better off for choosing this option"

My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.

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