Although the average pensioners income has risen by 26% in the last ten years, their average shopping basket spend has increased by 45% between 1995 and 2005, states a report by Key Retirement Solutions. Staple foods, such as milk, bread, meat, vegetables and tea, all rose by an average of 15.2%, while ‘chemist’ goods, which include NHS prescriptions, rose by 17.1% in the same period. Non-essential products, such as travel and gardening products have increased substantially during the last decade, rising by almost 45%.
The company, commenting on the report, suggested that equity release is a great means of boosting disposable income.
Our view
The gap between the well off pensioner and the poorer pensioner is widening. There are many more "comfortable" pensioners as a result of property and other wealth increases and pension planning. The Pensioner Pound will have even greater effect on how we live and work over the next few years. You may even see politicians waking up to Pensioner power.