People over the age of 75 are the most at risk of financial problems caused by the increasing rate of inflation, a new study has indicated.
Alliance Trust’s research into the effects of inflation on different age groups in the UK has indicated older people are being hit by the highest rate of inflation, with it rising from 5.4 per cent to 6.3 per cent last month.
In comparison, British people aged under 30 are experiencing a rate of 4.4 per cent.
This discrepancy is partly due to rising food prices, as those over 75 typically spend 16 per cent of their household budget on food, while those under 30 spend under nine per cent.
Head of the Alliance Trust Research Centre Shona Dobbie said: “Over 75s are facing a rate of inflation 43 per cent higher than the official rate of inflation, which is currently 4.4 per cent, mainly due to rising utilities and food costs which have soared over the past year.”
The figures may suggest the elderly are more likely to be hit with debt management problems if the situation continues.
Also in the news this week, Fair Investment has found 87 per cent of people claim they were mis-sold endowment policies in the 1980s and 90s.