View more on these topics

Pensioners’ living costs rising fastest in UK

The cost of living for people aged 65 and over is rising faster than the national average, according to research by Prudential.

Analysis of household expenditure between 2002 and 2006 reveals that on average, annual expenditure in households where the main occupant is aged 65–74 has increased by around 9 per cent as opposed to a national average of 4 per cent.

For households where the main occupant is aged 75 and over, the figure rises to 10 per cent.

Pru says these results are not surprising given that the average household spends 10 per cent of its annual income on food and non-alcoholic drink, compared to 15 per cent for households where the main occupants are aged 75 and over and 13 per cent for those aged 65-74.

Despite this, pensioner income is only growing by around 3 per cent a year.

Pru says if these household expenditure figures continue to rise at the same rate, the average cost of living for pensioner households where the occupants are aged 65 – 74 would increase by 55 per cent by 2012.

Prudential Retail Life & Pensions managing director Gary Shaughnessy says: “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 and in recent years these have seen some of the highest increases in costs, which helps explain why retired people are seeing a higher rate than the average in their annual expenditure. This, coupled with the fact that life expectancy has increased, is putting much greater pressure on income in retirement.”


Suisse to merge multi-manager funds

Credit Suisse is to streamline its multi-manager fund range after poor take-up of its regional funds.New managers Graham Duce and Aidan Kearney are set to merge the group’s European, North American and Japanese multi-manager funds into its international fund and the Asia Pacific fund will be rolled into its emerging funds.The four regional funds have […]

Aifa triggers RDR fightback

Aifa has launched the first stage of its battle plan against many of the Retail Distribution Review proposals it warns could endanger the future of professional advice and lead to severe consumer detriment.

Sants warning to advisers that business models must change

New FSA chief executive Hector Sants has warned adviser firms they must be ready and willing to change their business models in response to the retail distribution review to put an end to market failures.Speaking publicly for the first time about the RDR, Sants told the annual public meeting in London: “It is obviously clear […]

Myners charged with making personal accounts peace

Paul Myners has taken up the role of Personal Accounts Delivery Authority chair and with it the task of making many of the difficult decisions the Government has been wrestling with for the past two years.

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment