UK retirees have seen a 33% rise in living costs since 2000, according to new research from LV=.
The retirement firm reported that the total expenditure of the UK’s 10.6 million retirees equals £96 billion a year.
This means on average a retired couple spends £17,922 a year and a single retiree spends £9,917 a year, or £190.70 a week. With the average pensioner in the UK receiving state pension income of £102.15 a week, retirees are spending up to £88.55 a week (or 87%) more than the average state pension.
LV= said the biggest dent to a pensioner’s overall wallet is from food and non-alcoholic drinks, costing £1,411 annually and equating to 14% of their annual spend. The second biggest emphasis of spending is on recreation and culture single pensioners are spending an average of £1,337 a year[5].
Pensioners are using 9% of their annual spend on utilities such as fuel, water supply and electricity they now spend £918 a year, compared with £635 in 2000.
Although senior citizens receive discounted travel, the cost of transport and motoring costs (including petrol and vehicle maintenance) add up to an average annual bill of £1,217.
The cost of living has increased significantly since 2000. The biggest percentage rise on the cost of goods for pensioners has been on alcoholic drinks and tobacco which has increased by 57%. Food and non-alcoholic drinks comes second with a 45% hike.
Matt Trott, LV= head of annuities, said: “Low interest rates and rising inflation has hit pensioners hard with the cost of living dramatically rising since 2000