Older savers under inflation pressure

The combination of high inflation and low savings interest rates is putting many "silver savers" under significant financial pressure.

Data from the Silver RPI published by Age UK Enterprises, shows that the average person over 55 has experienced prices increases at five per cent above the headline inflation measures.

Age UK Enterprises believes this equates to £30 a month in monetary terms, totalling over £900 a year.

Gordon Morris, managing director at Age UK Enterprises, said: "Many people in later life have worked hard with the ultimate goal of a comfortable retirement in their sights."

He added that the results are saddening to see as many older people are coming under increasing financial pressures due to rising living costs.

The financial worries also seem to get worse with age as the report revealed that a typical 70-74 year-old now experiences "real" price rises at 5.3 per cent above headline RPI figures.

Many experts believe that older people will have to work past the current retirement age in order to fund their eventual retirement. Two-thirds of workers who planned to retire in 2011 are considering continuing to work past pension age, according to Prudential.
 

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2011-02-18 10:45:21 © Moneyextra.com