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Retiree fears justified by inflation levels
15 May 2008 12:00
The level of inflation faced by elderly Britons rose last month, according to new figures, vindicating growing anxiety about the impact of worsening costs on retirement incomes.
A recent poll by Liverpool Victoria revealed that two thirds of people facing retirement have grown more worried about their future financial situation over the past year, while three out of four cited rising food and fuel costs as a major concern.
These fears have again been justified, as the rate of inflation facing 65-to-74 year-olds rose from 3.2 to 3.8 per cent in April, Alliance Trust's data found, driven by seven per cent growth in food prices and an eight per cent hike in utility prices over the past year.
Meanwhile, the rate of inflation for over-75s climbed from 3.4 to 4.1 per cent last month, compared to the three per cent rate currently facing under-30s, while inflation stands at 3.3 per cent for 30-to-49 year-olds and at 3.6 per cent for 50-to-64 year-olds.
Alliance Trust's head of research Shona Dobbie explained that inflation is hitting retired Britons worst as they spend a high proportion of their income on basic food items, such as dairy products, on which prices have risen by 16 per cent over the past 12 months.
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