Wednesday 6th December 2006
Pensioners are facing a financial "squeeze" following retirement, according to Norwich Union.
The insurers quarterly Retirement Index showed that household bills have risen by 58 per cent since 1995, compared with an increase in pensions of 31 per cent.
Brendan Kearns, product development manager at Norwich Union Personal Finance, said: "Norwich Union commissioned this index to look at the challenges faced by retired people."
"Retirement is often regarded as a time when pensioners should be enjoying their life but rising household bills mean that many on fixed incomes are struggling," he added.
In the 12 months to August pensioners were hit especially hard, according to Norwich Union, with household bills increasing by 8.6 per cent, more than three times the rate of inflation.
Mr Kearns noted that pensioners who own their own home might benefit from the extra money offered by an equity release programme or a re-mortgage.
His advice followed statistics which show a 194 per cent increase in house prices over the 12-month period to August 2006.
Research from engage Mutual Assurance this week found that five per cent of Britons managed to help their retired parents with utility bills in the past year.
©
Everything on preparing your finances for your children's futures. From Child Trust Funds through to tax planning. Request your FREE brochures here.
