Bleak financial outlook for older people

Free bus passes, cheaper TV licences and additional health services are failing to compensate pensioners for the rises in the cost of living which affect them, such as council tax, fuel and food prices, research has found.

If leisure and entertainment factors are removed from the retail price index calculations, older people could face a more likely increase to their costs of living of seven per cent - as opposed to the government target of two per cent.

Bob Mottershead, retail sales executive at the Newcastle Building Society, comments: "These findings paint a bleak picture for pensioners in 2008.

"The rising cost of living is undoubtedly a concern for us all, however, commonly it is those in later years who suffer the most. For the many relying on the basic state pension of just £87.30 per week, these increases could negatively impact everyday quality of life."

Pensioners, who tend to have accumulated sentimental and valuable possessions, are urged to prioritise their spending on home insurance - and to use their insurance company's dedicated tradespeople to carry out repair work to ensure that their property is protected.

28/01/2008 11:53:04