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Cost of living for pensioners soars by £429

By Elliot Wright, 14th January 2010

Pensioners have to shell out an extra £429 to maintain the standard of living they enjoyed just one year ago, MGM Advantage has revealed.

The retirement income specialist said that the cost of living for a household where the main occupant is aged 65-74 is now £23,106 - an increase of 1.89% on last year.

For households where the main occupant is over 75, expenditure has gone up by £225 to £14,926 - a rise of 1.53%.

The cost of living for an average home has risen by £670 to £36,888.

The figures are based on how different households spend their annual budgets and changes to the cost of goods and services between October 2009 and November 2009.

The areas of expenditure that have seen the biggest increase in cost over the past 12 months include transport, household goods and services and recreation and culture which have risen by 6.9%, 3.5% and 2% respectively.

In light of ever-increasing costs, the group is urging people to ensure that they are receiving the best annuity considering their circumstances.

Aston Goodey, Sales and Marketing Director of MGM, said: "Many retired people have had to endure a rise in their cost of living.  This, coupled with the fact that people are generally living longer is placing considerable pressure on retirement income.  All the more reason therefore to shop around for the best annuity, and seek financial advice to ensure you achieve the best possible income in retirement. 

"If you are entitled to an enhanced annuity for example, our research shows that, depending on your medical condition, you could on average achieve around 22% more income."

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