Retirees face higher than average living costs - Money - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Retirees face higher than average living costs

Retirees face higher than average living costs

Category: Money

Updated: 08/07/2009
First Published: 08/07/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Retired people are seeing their cost of living increase at a significantly higher rate then the national average, industry data analysis by MGM Advantage has concluded. Figures show that between 2002/03 and 2007, the average yearly expenditure of households where the main resident is aged between 65 and 74 increased by 22.49 per cent.

On average, the average annual outgoings increased by markedly less, rising by just 15.91 per cent.

In households where the main occupant is 75 or over, the average amount spent each year increased even more, rising by over a quarter (25.18 per cent).

Using the available figures, MGM Advantage estimates that average annual household expenditure today in the 65 to 74 bracket is £22,677.96. The estimated yearly cost for those 75 and over is just over £14,700.

The spiralling cost of living for those in retirement has been put down to older householders spending a greater proportion of their funds on housing costs, fuel and other goods and services that have been subject to large scale price increases in recent years.

"This, in addition to the fact that life expectancy has increased, means more pressure is being placed on retirement income," said sales and marketing director, Aston Goodey.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Have your financial habits changed?

2016 was certainly a turbulent year, and it's had a notable impact on household finances. Indeed, research shows that recent events have influenced the way over half of UK respondents manage their finances, with many becoming more cautious.

Kids got £180 in pocket money in 2016

New research has revealed that kids aged 4-14 received an average of £180.44 in pocket money over the last year, which was topped up by an additional £47 on average received in cash over the Christmas period.

How much could it cost to get fit in 2017?

We’re almost a week into 2017, and hopefully, many of those New Year’s Resolutions are still going strong. Figures suggest that the most popular resolution is to achieve a healthier lifestyle, but just how much could that ambition set you back?