By Max Clarke

In response to the latest annual CPI inflation rate reaching 4%, MGM Advantage, the retirement income specialist, estimates that collectively UK households need to find an extra £35 billion to maintain the standard of living enjoyed 12 months ago. For households where the main occupant is aged 65 -74, the corresponding figure is £2.8 billion and where they are aged 75 and over, it is £2.19 billion. To maintain the same living standards as a year ago, the UK population (61,792,000) would need to spend an estimated additional £571.85 per person.

MGM Advantage estimates that a typical UK household would need to spend an extra £1,360 a year to maintain their standard of living from a year ago. The corresponding figures for households where the main occupant is aged 65-74 is £849, and for older households it is £626.

Aston Goodey, Sales and Marketing Director, MGM Advantage comments:

“The latest CPI rate of 4% is yet another blow to people in retirement. The price of goods continues to rise at an alarming rate, and coupled with plummeting annuity rates and the fact that people are living much longer, means many people in retirement are finding it more difficult to survive financially.”