Pensions - Articles - High inflation leaves pensioner budgets incredibly strained

 Vince Smith-Hughes, retirement expert at Prudential said:

 "With inflation staying high, pensioners' budgets remain incredibly strained. They are particularly vulnerable as they spend a proportionately higher amount of their income on items such as food and fuel which are seeing bigger price rises. Figures from the ONS show energy bills cost pensioner households an average of £1,583 per year, making it their single largest expense.

 "To add to this, retirement incomes in 2013 have hit a six year low, with those retiring this year expecting an annual income of £15,300 - 18 per cent down on 2008.

 "It's important that those retiring take the impact of inflation into account when planning their future income. Contacting a financial adviser or retirement specialist is essential when choosing an annuity as the inflation risk can erode the spending power of retirement income. By getting good quality financial advice, retirees can ensure they are well positioned for retirement."