Pensions provision must be scaled up to match the 'elderly inflation rate' of 4.2 per cent, the Alliance Trust has claimed.
The UK's elderly are "hardest hit by inflation", insists the trust's head, Shona Dobbie, noting that "the official headline inflation rate does not necessarily reflect the actual impact of price increases experienced by the over-75s".
Following the release of Consumer Price Index data showing that inflation rates hit three per cent in December – their highest for 11 years – the Alliance Trust believes that inflation hits the over-75s population disproportionately, because a high proportion of their income is devoted to meeting specific living costs.
Gas price inflation, which stands at 40 per cent, and electricity price inflation, 27 per cent, hit the elderly hard because average incomes are lower, while health concerns dictate the need to keep warm through the winter.
Concerns around energy prices are particularly acute as the Met Office issues severe weather warnings for the coming days, predicting floods, gales and several colder snaps in what has hitherto been an unseasonably warm winter.For more information about pension advice, click here.
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