Research by the firm shows that the average annual expenditure for households with main occupants between 65 and 74 had an increase in the cost of living over 2002/03 to 2007 of 22.49 per cent compared to the national average of 15.91 per cent.
For those households with main occupants over 75, the increase was 25.18 per cent.
Based on these averages, MGM Advantage estimates that the current annual expenditure for households with main occupants 65-74 would be £22,678 and £14,700 for those over 75.
Sales and marketing director Aston Goodey says: “The cost of living is rising and unfortunately retired households are having to face up to higher than average increases.
“This is because older households spend a greater percentage of their expenditure on housing costs, fuel and goods and services that in recent years have seen some of the highest increases in costs.
“This, in addition to the fact that life expectancy has increased, means more pressure is being placed on retirement income. This makes it all the more important to shop around for the best annuity, and seek financial advice to ensure you achieve the best possible income in retirement.”