Pensioners’ incomes ‘being squeezed’

It found that that between the first three months of 2006 and April to June 2006, average pensioner household income rose by just 0.6 per cent, while “essential expenditure” rose by 3.8 per cent – over six times as fast.

Dominic Walley, managing economist of the Centre for Economics and Business Research, said: “[We] found that 2005 was the worst year for pensioner comfort. Rises in household bills have affected everyone, but pensioners have been hit hardest. And poorer pensioners have it the worst.”

He stated that even what government relief there has been has been of little comfort to retired people struggling with their debt management.

“Retirement is often regarded as a time when pensioners should be enjoying their life but rising household bills mean that many on fixed incomes are struggling,” added Brendan Kearns, product development manager at Norwich Union Personal Finance.