Dec 5 2006
According to new figures, household bills are rising at a faster rate than pensioner's disposable income.
Figures from the most recent Norwich Union Retirement Index showed that essential expenditure for pensioners rose by 3.8 per cent between the first three months of the year and the period from April to June, compared to an increase in pensioner income of 0.6 per cent.
Brendan Kearns, product development manager at Norwich Union Personal Finance, said: "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."
The company noted that in the past year, pensioners have been hardest hit by increases in utility bills, home repairs, fuel and council tax.
In October, Fidelity International reported that nine in ten retirees were at risk of using up all their retirement savings before death, adding that higher withdrawal rates can "quickly" reduce savings.
