Pensioners hit by soaring costs

Pensioners have seen the cost of the goods and services they use soar by more than a third during the past ten years.

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

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

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

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

The only major category where prices have fallen is clothing and footwear, which is now 23 per cent cheaper than ten 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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