Homeowners who are reliant on the state pension to make ends meet may be disconcerted to hear that pensioner inflation has risen by 0.3 per cent this month, according to the latest figures.
Data from the Alliance Trust Research Centre indicates that the current rate of pensioner inflation hit 4.5 per cent in February 2007, up from 4.2 per cent in January.
To put this into context, the headline consumer prices index inflation rate rose 0.1 per cent to 2.8 per cent in the same period.
"Our four-year study shows that the UK's elderly, who were already the hardest hit by inflation among all the age groups, are still seeing their inflation rise faster than the average home," commented Shona Dobie, head of the Alliance Trust Research Centre.
Ms Dobie added that this is because rises in the price of gas, electricity and basic food groups typically affect pension holders more acutely than the younger generation.
People who are concerned about the high cost of living when they retire may wish to consider sorting their pension plans now.
For instance, they may decide to open a company pension scheme or stakeholder pension to supplement income from their basic state pension.
Elderly inflation may concern pension holders, study suggests
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Elderly inflation may concern pension holders, study suggests
Wed, 21 Mar 2007
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