Inflation-driven debt help needed among pensioners
Inflation-driven debt help needed among pensioners
- Thursday, 18 February 2010The impact of rising inflation on the UK's elderly population may increase the need for
debt help, as spending power is drastically reduced.
According to Alliance Trust figures released this week, January inflation rates for the 50 to 64 and 65 to 74-year-olds have jumped the most, surpassing the official headline rate.
The increase was the most significant for those in the 50 to 64-year-old age group, rising from 4.2 per cent to five per cent, the highest since October 2008.
Head of pensions research for Hargreaves Lansdown Tom McPhail said the reported increase in inflation was likely to have a significant impact on pensioner spending power.
"The relative position of pensioners against the general population has not been positive," he said.
"Looking at demographic trends and the increasing pressures of state and private expenditure on pensioners generally, there [is] the increase in healthcare costs and increasing demand for healthcare provision for long term care."
According to the Office for National Statistics, the Consumer Price Index annual rate of inflation was 3.5 per cent in January, up from 2.9 per cent in December.

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