Research from the Alliance Trust has found that the elderly are still hit the hardest by inflation. They have found that over the past two years, the inflation rate facing homes run by the over 75's was 46% higher than the official headline rate.
The Alliance Trust believe that this is because they spend a higher proportion of their income on basic necessities such as food, housing, electricity and gas, and these are the goods that have been rising in price most steeply.
Our view
This is not new news but it is helpful to remind people. Generally speaking in retirement, most people have pensions that either increase at a flat rate or do not increase at all. There are some lucky ones that have inflation linked pensions but not all.
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