Feb 18 2009
Although reports abound in the media about falling interest rates, retirees are still seeing considerable increases in the cost of living.
This is according to the Alliance Trust, which claims that people aged 75 and over are being hit with inflation of 5.4 per cent, people saving for retirement may wish to note.
The firm went on to say that this is 80 per cent higher than the headline rate and almost double the inflation rate facing people under the age of 49.
Shona Dobbie, head of the Alliance Trust Research Centre, said: "Although we saw a small decline in the headline rate of inflation this month, we are concerned that inflation facing the older age groups remains high."
Last month, the Lincoln Financial Group released research which suggested that more than two-fifths of UK retirees will have run out of funding by the time they reach the age of 85.
It described the statistic as a "major cause for concern".
