Pensioners see living costs soar

5:17am Saturday 5th July 2008

Pensioners have seen the cost of the goods and services they use soar by more than a third during the past 10 years, research has showed.

The rate at which the cost of living for pensioners is rising outstrips increases in Retail Price Inflation, which has risen by 32% during the past decade compared with a 36% jump in inflation experienced by pensioners, according to life insurer Clerical Medical.

The group said housing costs had been the key driver behind the increase, with these rising by 69% since 1998, while council tax has soared by 89% and the cost of repairing and maintaining a property had jumped by 84%.

Housing is the single largest cost that pensioners face, with accommodation costing an average of £63.65 a week, accounting for 25% of pensioners' overall expenditure.

Other areas of spending which have seen steep jumps include alcohol and tobacco, which has risen by 45% during the past 10 years, while transport costs have increased by 43% and the price of food and non-alcoholic drinks is up by 29%.

The only major category where prices have fallen is clothing and footwear, which is now 23% cheaper than 10 years ago.

Martin Ellis, chief economist at Clerical Medical, said: "The average cost of living facing pensioners has risen by more than one third over the past decade.

"The cost of living for pensioners has increased by more than that for all households during the period, particularly in the last five years."

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