Pensioners struggle as cost of living rises
Published On 5 December 2006
Pensioners are struggling against steady rises in the cost of living, a recent report has claimed, with utilities among the financial pressures. The latest figures from the Norwich Union Retirement Index, put together by the centre for economics and business research (cebr), found that while pensioner income rose by 0.6 per cent between April and June, the cost of household bills increased by 3.8 per cent.
The figures are less severe when viewed over the last ten years but are still discouraging for the many pensioners who struggle to pay bills each month.
Post-tax income has risen by 31 per cent for the average pensioner since 1995, while the cost of essential spending has increased by 58 per cent.
Brendan Kearns, Norwich Union Personal Finance's product development manager, said: "Retirement is often regarded as a time when pensioners should be enjoying their life but rising household bills mean that many on fixed incomes are struggling."
Dominic Walley, managing economist of cebr, added: "Rises in household bills have affected everyone, but pensioners have been hit hardest. And poorer pensioners have it the worst."
Gas bills have risen by 39 per cent in the past year, the study found.
