WIREDGOV

On the one year anniversary of the Silver RPI, latest findings show that over 55s have seen an 18% rise in living costs since 2008 – almost 5% more than the general population.

This means that someone aged 55 or over is now, on average, £978 a year worse off than official measures recognise. This increases to over £1,100 in additional annual costs for those aged 65-69.

In the last 12 months alone the cost of living for those aged over 55 has risen by £1173 in absolute terms.

The dramatic increase in costs experienced by those in later life comes at a time when retirement income is under increased pressure. Low interest rates means savings returns have been hit while annuity rates are at an all-time low of £5,600 per £100,000 or 5.6%.

Combined with increasing life expectancy, those retiring today will have a smaller pot of cash to sustain them over a longer period of time than those who retired five years ago.

Commenting on the findings, Gordon Morris, Managing Director, Age UK Enterprises said:

'We have to recognise that as life expectancy increases, and we see more people live into their 80s, 90s or to being over 100, action has to be taken to help them plan ahead to protect and maximise their income. Government and the financial services industry must improve the range of financial products available to those in later life, and the information and support available to ensure consumers only ever buy what best meets their needs.'

Silver RPI is published by Age UK Enterprises, the commercial services arm of the charity Age UK.