The cost of living for elderly people is rising faster than the national average - according to a study released today - which could add to worries about a pensions shortfall
Prudential warns that the household expenditure for older people has risen by nine per cent from 2002 to 2006, compared to a national average of four per cent.
Managing director of Prudential Retail Life and Pensions Gary Shaughnessy comments that increasing life expectancy and the higher cost of living is putting pressure on pensions.
"When compared to the average home, older households see a greater share of their expenditure go on housing costs, fuel and household goods and services," he remarks.
The study has found that rising food prices have hit the elderly hardest, basic foodstuffs like fish have increased in price by 12.7 per cent in the 12 months leading up to May this year.
However, the study also finds that pensioners are becoming wealthier to fund their lifestyles, which could indicate that people are putting more money into their pension plans.
Prudential offer financial services such as pensions and insurance products.
Pensions under pressure from rising living costs
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