Pension News Prudential Finds Bills Will Rise Faster Than Pensions
26 January 2005
A report commissioned by Prudential has found that over the next fifteen years utility bills are to increase faster than pensions.
Datamonitor’s “Cost of a home in retirement” report revealed that pensioners will face price jumps related to the cost of living.
This could lead to a doubling of household expenses by 2020, according to reports in the Manchester Evening News.
The report claims utility bills would increase by five per cent a year until 2010, while interest on income grows by one per cent less each year.
Ali Crossley, director of lifetime mortgages at Prudential, said: “The cost of running a home in retirement will take up more and more of pensioners’ disposable income.
“Today, necessities account for 12.3 per cent of their income. By 2020 it will be 13.5 per cent.
“Pensioners who are feeling the strain already, could find it even more difficult maintain the same standard of living in the future.”