The cost of living is rising faster for retirees than others, according to new research by enhanced annuity provider, MGM Advantage. They claim it is increasing at a far faster rate than the national average, and their research shows that the average annual expenditure for the many households with main occupants between the ages 65 and 74 had an increase in their cost of living over 2002/03 to 2007 of about 22.5% compared to the national average of around 16%. And, for those households with main occupants over the age of 75, the increase was over 25%.
Based on these averages, MGM Advantage has estimated that the current annual expenditure for households with main occupants in the former age bracket, 65-74, would be £22,678, and £14,700 for those in the latter age bracket, over 75′s. Their sales and marketing director, Aston Goodey states that the cost of living is on the increase and unfortunately those retired households are having to face up to higher than average rises, and this is because older households spend a greater share of their expenditure on their housing costs, fuel, goods and services that in recent times have seen some of the highest rises in costs.
Aston added that this factor, coupled with the fact that life expectancy has increased over recent times, means more pressure is being placed on achieving the best retirement income. This makes it all the more important that people shop around for their annuity quotes to get the best annuity rates, and that they seek financial advice to ensure the best possible income in retirement.
As mentioned, MGM Advantage do specialise in the offering of enhanced annuity rates for those retirees who have ill health, take prescribed medication, or smoke on a regular basis. If you fit into this category you could be entitled to a far higher retirement income.
