12 September 2012
Millions feeling the pinch
Millions of older people are having to cut back on food due to the increasing rate of inflation.
A new report reveals how the ‘real-value’ of money for the elderly has been significantly reduced. Those aged between 65 and 74 have seen an 11% drop in their buying power since 2008. However, this is made worse by the fact that the cost of living has also increased over this period, by a huge 20.1%.
Dr Ros Altmann, director general of Saga, said, “The squeeze on their incomes has forced many old people to make cutbacks, even on ‘essentials’, such as food. The timing could not be worse with a record 800,000 people turning 65 this year as the babyboom generation, born after the end of Second World War, reach the landmark birthday.”
Dr Altmann added, “As the number of baby boomers reaching retirement peaks, current monetary policy is cutting many pensioners’ incomes – permanently.”
Simon Rose, from the campaign group Save our Savers, said, “It is the time of life when people expect to be living comfortably off the rewards of a lifetime of hard work. But they are finding themselves under extreme stress because of the policies of the Bank of England just seem to be particularly unfair to this age group.’