Pensioners see 34% rise in living costs

Pensioners have seen an average rise of 34 per cent over the past decade in the cost of the goods and services they purchase, according to new research from Clerical Medical.

Rising housing costs, accounting for 44 per cent of pensioner inflation, have been the main cause of pensioner inflation in the past decade.

Increases in council tax (94 per cent) and repairs and maintenance (93 per cent) were the key factors behind the increase in housing costs.

Housing now accounts for an average 25 per cent of all expenditure, at £55.79 per week, and represents the same proportion of expenditure for pensioners as for all households.

Meanwhile, non-housing items also saw significant inflation over the past ten years, with alcoholic drinks and tobacco increasing 42 per cent in price, recreation and culture 35 per cent and personal goods and services 28 per cent.

Clothing and footwear (-21 per cent) was the only main category of expenditure where prices have fallen over the past decade.

Tim Crawford, group economist of Clerical Medical, said: "Pensioners have faced a one-third rise in the average cost of living over the past decade.

"Higher housing costs have been the key factor driving up living expenses for pensioners with these costs accounting for almost a quarter of the average pensioner's total spending."

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