Inflation taking its toll on older consumers
17 January 2012 16:15:31
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| With inflation still biting, savings are becoming more important. |
According to over-50s insurer Saga, inflation remains well over the government's 2% limit, with RPI at 5.5% for over 50s, higher than the national average (4.8%).
This means that money held in low-interest bank accounts is currently losing value, but by comparing savings accounts and switching to one with a higher rate, customers can ensure they are getting the most from their nest egg, should they need to dip into it.
The Saga research comes after the government announced that annual RPI inflation fell to 4.8% in December, while CPI annual inflation fell to 4.2%.
It suggests that energy costs remain a major problem for older people, despite recent pledges by the big six providers to cut their prices. In fact, the over-50s specialist estimates that gas and electric prices increased by 20% and 14% respectively in 2011.
Dr Ros Altman, director general of Saga, said: "Living costs have risen somewhat less fast in December but today's inflation figures are nothing to celebrate.
"High levels of inflation are damaging consumer demand and pushing more pensioners into poverty. This will weaken the economy and damage job creation for the young and unemployed."
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Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.
Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.
