Saga says inflation has slashed older people’s incomes most

Ben Southwood
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THE TOTAL increase in the prices of the basket of goods bought by over 65s has outstripped official inflation in the past five years, according to data out today.

Over 50s have faced 2.5 percentage points more total inflation since September 2007, data from Saga and the Centre for Economics and Business Research claimed yesterday. In the five years to September 2012, total retail price inflation for all age groups was 17.4 per cent, but 50-64 year olds faced total inflation of 19.9 per cent, Saga said. Sixty-five to 74-year-olds faced 23.2 per cent total price rises, the group said, with over 75s seeing their basket of goods get 22.9 per cent more expensive.

And official data showed that those whose main income is the state pension faced total inflation of 27 per cent or more during the five year period.

Saga director-general Dr Ros Altmann warned that shrinking purchasing power is likely to dent spending.

These statistics came in Saga’s most recent quarterly report, which also showed their quality of life index for over 50s moving further into negative territory, from minus 6.6 to minus 8.0.