Cost of living affecting the retired, research shows

Increases in the cost of living may see retired households faced with further debt threats, as research has revealed that the average family in this situation will need an extra £429 a year to keep themselves as in the manner they have grown accustomed to.

Conducted by MGM Advantage, the survey uncovered rises in the price of living of 1.85 per cent – or £670 – between 2008 and 2009.

Such climbs, sales and marketing director with the company Aston Goodey noted, when combined with the fact that people live longer these days, places “considerable pressure on retirement income”.

He recommended that those affected consider shopping around for good annuities and “seek financial advice to ensure you achieve the best possible income in retirement”.

Mr Goodey’s comments follow a recent study by Rias, which found that those over the age of 50 will be providing the economy with a further £524 million as a result of the VAT increase.

By Sarah Adie