Brits need an extra £40bn to maintain their standard of living

To maintain the same standard of living as this time last year Brits would need to find an extra £40 billion, suggesting it is no surprise that people are starting to look for the best loan rates.

Research by MGM Advantage found that the average estimated annual expenditure is £35,533 while the average income where the main occupant is 65-74 is £22,187, dropping down £16,356 where they are aged 75 and over.

This works out as an estimated additional £636.70 per person per year that needs to be spent for households to keep 2010's standard of living, increasing to an extra £1,530 a year per household.

"The latest CPI rate of 4.5 per cent will continue to hurt people financially in retirement. Given the fact that people are living longer with a shrinking retirement income pot, means further retirement income uncertainty," said Aston Goodey, sales and marketing director of MGM Advantage.

USwitch suggested that people can make large savings on their energy bills, freeing up money for other things, by being more efficient and economical.

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2011-09-14 16:52:21 © Moneyextra.com