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News: Cost of living 'increasing for retired homes'
Cost of living 'increasing for retired homes'
Thu 4 Mar 2010 - Published in Pensions
The annual cost of living has increased by more than £770 for retired households in the last 12 months, it has been claimed.
Research carried out by retirement income specialist MGM Advantage found that the average home where the main occupant is aged between 65 to 74 years needs an additional £774.70 a year to get by.
In addition, the study revealed the extra sum needed by households with a main occupant aged over 75 is £383.91.
Aston Goodey, sales and marketing director at MGM Advantage, commented: "January saw the biggest year-on-year consumer price index increase since records began which is having a dramatic impact on the income available to those in retirement."
The expert also called on the pensions industry to offer more saving options such as investment-linked annuities to people, in order to provide them with a greater income in retirement.
Recently, Patrick Connolly, head of communications at AWD Chase de Vere, said that personal pensions have been harmed by the volatility in the stock market.