Index says pensioners 'left with less'

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Index says pensioners 'left with less'

Mon 4th Dec 2006

Due to the cost of household bills increasing at a faster rate than the state pension, pensioners are seeing a drop in their disposable income, latest figures have shown.

The latest Norwich Union Retirement Index shows that for the first six months of this year, the average household income for a pensioner rose by 0.6 per cent compared with essential expenditure's increase of 3.8 per cent during the same period.

Some of the largest bill increases between August 2005 and August 2006 were gas bills, up £55, electricity bills which rose by £41 and council tax and domestic rates which saw an increase of £27.

Brendan Kearns, product development manager at Norwich Union Personal Finance, remarked: "Norwich Union commissioned this index to look at the challenges faced by retired people, and to see how pensioners' disposable income is changing.

"Retirement is often regarded as a time when pensioners should be enjoying their life but rising household bills mean that many on fixed incomes are struggling."

Additioanlly, Dominic Walley, managing economist of the centre for economics and business research who compile the Norwich Union Retirement Index, said that 2005 "was the worst year for pensioner comfort".

Aviva, who owns Norwich Union, is the largest insurer in the UK as well as the sixth biggest in the world.

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