Soaring prices making over-55s much worse off

THE rising cost of food, utility bills and petrol has bumped up the cost of living by almost £1,000 for the over-55s, a study has claimed.

The latest findings of the Silver Retail Price Index, published by the commercial services arm of charity Age UK, said older people had been harder hit by the current economic environment of low interest rates and high inflation.

Pensioners are more likely to have paid off the majority of their mortgage, meaning they do not benefit from reduced payments - while they are missing out on interest gained from savings.

The organisation said the average person aged over-55s outgoings had risen by 16.86 per cent - or 984 - compared with a headline retail price index of 11.95 per cent.

Logan Steele, general manager of Age Scotland Enterprises, said: "Since 2008, people in later life have consistently experienced price rises at a far higher rate than headline RPI."

He added: "At an age when significant long-term financial decisions are being made, the Silver RPI is crucial to helping people better plan their future costs."