While the typical annual expenditure for a British adult has risen by around four per cent since 2002, this figure stands at close to nine per cent for those aged between 65 and 74, according to Prudential.
Food price rises are believed to impact the incomes of elderly consumers more than their younger counterparts and for the last few years everyday groceries have been on the increase, the financial services firm asserts.
Gary Shaughnessy, managing director of Prudential’s retail life and pensions division, said: “When compared to the average home, older households see a greater share of their expenditure go on housing costs, fuel and household goods and services.
“In recent years these have seen some of the highest increases in costs, which helps explain why retired people are seeing a higher rate than the average in their annual expenditure.”
Earlier this year, a report from the Consumer Credit Counselling Services predicted that Britain’s debt management burden would increasingly shift to older generations.