By Max Clarke

Consumer prices inflation yesterday edged still higher, the Office for National Statistics confirmed, hitting 4.5%.

This, MGM Advantage- retirement income specialists, calculate, will translate to households having to spend £40 billion this year simply to maintain the quality of life they enjoyed last year.

For households where the main occupant is aged 65 -74, the corresponding figure is £3.16 billion and where they are aged 75 and over, it is £2.47 billion. This equates to the UK’s 62 million population spending an estimated additional £636.70 per person.

“The latest CPI rate of 4.5% will continue to hurt people financially in retirement,” says Aston Goodey, Sales and Marketing Director, MGM Advantage. “Given the fact that people are living longer with a shrinking retirement income pot, means further retirement income uncertainty.”

“We are seeing more interest in alternative retirement income solutions that can provide some protection against inflation and the rising cost of living. Our Flexible Income Annuity is growing in popularity as it offers the potential for investment growth as a natural hedge, and more people are recognising the need to mitigate against the impact of both rising inflation and falling annuity rates.”

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