Pensioners in the UK have seen their cost of living rise by as much as a third since 2000, research has revealed.
If you are reaching retirement age, or are thinking about starting a pension plan, you can compare pension plans with Money Expert.
Research by insurance company LV= has revealed that the cost of living for pensioners has gone up by 33% since 2000, with average spend far outstripping the average state pension income.
It was found that a retired couple spends an average of £17,922 per year, with a single retiree spending almost £10,000 per year.
This works out at almost £200 per week for each retiree ñ 87% more than what they receive in the average state pension in the UK.
ìLow interest rates and rising inflation has hit pensioners hard with the cost of living dramatically rising since 2000, resulting in pensioners having to significantly increase what they spend,î said Matt Trott, Head of Annuities at LV=.
ìFood, drink and bills take up a large chunk of the weekly budget; however, it’s good to see that people are able to enjoy themselves in retirement too.î
It was found that pensioners spend an average of £1,337 a year on recreation and socialising ñ the second-highest spend after food and drink.
Other big expenditures for pensioners include utility bills, with almost a tenth of their yearly income being taken up by gas, water and electricity payments. Pensioners now spend an average of £918 a year on utilities ñ up from £635 in 2000.
ìBeing a retiree in the UK doesn’t come cheap and people approaching retirement need to look at their retirement income options early, to ensure they get the most out of their savings to maintain a good quality of life in retirement,î added Mr Trott.
ìThere are a variety of options available, including annuities, pension drawdown and releasing equity from a property.î
You can compare pensions with Money Expert.