The latest Silver RPI report published by Age UK Enterprises shows that price inflation is hitting those in later life the hardest.
Since 2008, over 55s have faced additional costs of £918 a year due to higher price inflation.
These costs are even higher for older age groups, with those in the 65-69 age group facing additional costs of £1,054 a year since 2008.
Higher price inflation for older people is the result of the typical basket of goods and services consumed as we all get older.
The things we tend to buy and consume in retirement often increase in price at a faster pace than the items used in the Office for National Statistics (ONS) inflation basket.
This is an important issue to consider when planning for retirement and financial planning in later life.
Because your expenditure in retirement is likely to escalate more quickly, you need to consider what impact this will have on your income, savings and investments.
When working with clients to construct a meaningful financial plan, we take into account this ‘Silver RPI’ factor and ensure the inflation assumptions we use are realistic for the future.
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