Pensioners 'need help' to withstand recession
Recent figures show that money is getting tighter for pensioners, despite a fall in the Retail Prices Index.
The prices of products and services retired people tend to buy have not fallen in line with other market sectors, with research from the Institute for Fiscal Studies showing that inflation for 70 to 79-year-olds was 5.6 per cent on average in January.
Just Retirement is warning those drawing a pension that this, combined with the reduced return on their savings, means they should look carefully at their financial circumstances.
Retirement specialist at Just Retirement Nigel Barlow said these figures could mean a dramatic fall in living standards for older people.
He advised pensioners to use some of their savings "to purchase an annuity", adding that maximising the tax relief available would also supplement their income.
Two charities, Help The Aged and Age Concern, are urging any older people struggling with their finances to get in touch.
Anna Pearson, policy manager for Help the Aged, has also called on ministers considering the next budget to focus on "the long-term solutions pensioners need".
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