By Marcus Leach

The latest annual CPI inflation rate, which now stands at 4.5%, means collectively UK households need to find an extra £40 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 £3.16 billion and where they are aged 75 and over, it is £2.47 billion.

To maintain the same living standards as a year ago, the UK population would need to spend an estimated additional £643.3 per person.

MGM Advantage estimates that a typical UK household would need to spend an extra £1,530 a year to maintain their standard of living from a year ago. The corresponding figure for households where the main occupant is aged 65-74 is £955, and for older households it is £704.

“The latest CPI rate of 4.5% will continue to hurt people financially in retirement. The price of goods is rising at an alarming rate and coupled with the fact that people are living much longer, means many people in retirement are finding it more difficult to survive financially,” Andrew Tully, Pensions Technical Manager, MGM Advantage said.