Welcome news on fall in inflation

Thursday, 19 January 2012

“It is welcome news for consumers that inflation continues to fall, but despite the respite household incomes remain under pressure - and people in later life have been most affected by the rise in living costs.

Our Silver RPI shows that over 55s have seen their annual costs go up by, on average, six per cent more than the general RPI in just one year.

At a time when savings generate little or no income due to record low interest rates, this is extremely worrying.

While we welcome the increase in pensions by 5.2%, many people still won't have enough to maintain their living standard in retirement.

As life expectancy increases, and we see more people live into their ‘80s, 90s or to being over 100, action has to be taken to help them plan ahead to protect and maximise their income."

Gordon Morris, Managing Director of Age UK Enterprises comments.