Single retired people are being hit hardest by increases in the cost of living and need to grow their income to keep pace, says Britannic Asset Management.
The company's retired income monitor shows that over the last year the single retired sector has seen its cost of living in terms of RPI increase by 3.3 per cent, above the rise for the average working family, at 2.8 per cent, and for retired couples at 2.7 per cent.
Britannic says the main factor for the increase for single retireds is the rising cost of housing, fuel and power as they spend a bigger percentage of their income on these items than retired couples.
It says statistics show that if retired people had invested in the average corporate bond or high-income bond fund over the last 12 months, they would have more than covered the RPI increases while those relying on the average money market or savings account would have seen their standard of living decrease.
BAM sales and marketing director Francis Ghiloni says: “There is no disputing that the majority of retired people need to make their money work hard for them in retirement.
“Those looking for ways to generate additional income should consider all the alternatives and not just rely on their pensions being enough, otherwise they will be left with no option but to alter their spending patterns and tighten their belts.”