Inflation hammer blow as households will need to find extra £20.2bn
We are all feeling the pain from rising prices and stagnant wages, but this latest inflation increase really will be a hammer blow to households across the country.
The latest data shows UK inflation (CPI) grew by 2.7% in April 2017, up from 2.3% in March1. This change in inflation leaves UK households collectively needing to find an extra £20.2bn2 a year to maintain their standard of living compared to 12 months ago, according to Retirement Advantage.
Each household will typically need to spend an extra £742 a year to maintain their standard of living compared to a year ago.
Andrew Tully, pensions technical director, Retirement Advantage commented: ‘We are all feeling the pain from rising prices and stagnant wages, but this latest inflation increase really will be a hammer blow to households across the country.
‘The living standards squeeze can have a devastating impact on people living on fixed incomes, which typically includes retirees.’
The latest Retirement Advantage research3 highlights only one in three (35%) over 50s feel adequately prepared for retirement. 39% of those people who don’t feel prepared said they were worried about the impact of inflation on income.
Andrew Tully concludes: ‘Starting to plan early will put you in the best possible positon to deal with anything that retirement throws up at you. Getting professional financial advice can help you decide the best course of action for your personal circumstances and ensure you stay on track to enjoy the retirement you have worked hard for.’
- Source: Statistics Consumer Price Index (April 2017).
- Source: Retirement Advantage calculations based on the ONS Family Spending Report 2016 https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/datasets/householdexpenditurebyageofhouseholdreferencepersonuktablea9
- Survey conducted by Censuswide between 20.03.17 and 22.03.17 of 1,013 over 50 year olds who are yet to retire.