In the week that it was revealed consumer prices index inflation has passed chancellor Gordon Brown's upper limit of 3.1 per cent, a financing organisation has sought to highlight the particular inflationary difficulties faced by pension holders.
According to the latest report from the Alliance Trust Research Centre, the financing intelligence specialists, inflation for the over-75s increased 0.2 per cent to 4.7 per cent in March 2007.
It is claimed that pensions are being stretched further because inflation is proportionately higher for essential items such as food, gas and electricity than for luxury goods such as electricals.
Shona Dobie, head of the centre, has commented on the inflationary findings.
"While headline inflation has only moved above the critical level of three per cent this month, the elderly have been facing a rate of inflation in excess of this for nearly one year," she pointed out.
In other pensions news, the government is currently preparing to roll out a national pensions savings scheme in 2012 to encourage young people to save more of their income for retirement.
Unlike existing company pensions and stakeholder pensions, the scheme features automatic enrolment of full-time professionals.
Pensions stretched by disproportionate elderly inflation, expert claims
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Pensions stretched by disproportionate elderly inflation, expert claims
Wed, 18 Apr 2007
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