Pensions - Articles - Pensioners hardest hit by inflation

 Vince Smith-Hughes, retirement expert at Prudential said:

 "While it's good news for consumers that inflation has fallen to 3%, from last month's 3.5%, it is still significantly above the Bank of England's target rate of 2%.

 "Pensioners are typically the hardest hit of all consumers by inflation. Compared with the majority of people, they spend a much higher proportion of their income on the goods and services that have the fastest rising prices, such as food and fuel.

 "The impact of this is that the over 55s are almost £1,000 a year worse off* than non-retired consumers. The effect of very low interest rates combined with relatively high inflation is bad news for many pensioners."