Silver inflation is on the up

Rising costs of fuel and food have greater impact on the elderly and the young.

So the imminent rise in inflation – partly the result of the decline in the value of the pound – means pensioners will see their cost of living rise faster than others.

Alliance Trust calculates that the ‘silver’ inflation rate for people over 75 is now 3.2% against the 2.8% rate for under-30s, who benefit more from falling prices for gadgets and clothes.

Age UK do a similar index and the level of inflation is above that recorded by the Retail Price Index or Consumer Price Index. That’s a really important point for those in receipt of an index linked pension to note.

You actual rate of inflation is likely to be higher than any index that your pension is pegged to.

Steve Clark

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