Rising prices are taking a 3.55% slice out of pensioner income with pensioner couples suffering more than single OAPs, according to equity release adviser Key Retirement Solutions.
Inflation for pensioner households is well below the 5.4% RPIX inflation measure which excludes mortgage costs, but Key Retirement Solutions says inflation is a bigger threat to pensioners as they cannot rely on wage rises to bail them out.
The April rise in the Basics State Pension of 2.5% and the ongoing squeeze on interest rates which means most savings accounts pay negative returns after inflation are piling the pressure on pensioners, Key Retirement Solutions says.
Analysis from the equity release adviser indicates that inflation for single pensioners is currently 3% a year while for pensioner couples it is 4.1% producing an average of 3.55%.
Based on those figures the recent 2.5% rise in the State Pension to £97.65 for a single pensioner and £156.15 for a couple means they’ve suffered a pay cut.
Dean Mirfin, group director of Key Retirement Solutions, said: “Inflation is reckoned to be a price worth paying in the short-term so that the economy recovers but pensioners are suffering more than most.
