So you think you have inflation protection?

ExMugPunter

Inflation for OAP's has been measured at 8%, yet supposedly at an all time low for the rest of us.

http://www.dailymail.co.uk/news/article-2962542/Being-pensioner-costs-800-year-basket-goods-elderly-rises-16-times-rate-inflation.html

With around 20 years to go till retirement, it make me realise whilst my pension has some inflation protection, it might not actually be enough.

I guess in terms of regional variation, I should be nearer the £9600 cost of living for the North East. I only have myself to blame if I don't accumulate a pension worth more than that. But going forward I think I need to increase the safety net in order to allow for a larger inflation discrepancy.

Thoughts?

Is this article a true reflection of the costs of retirement?

brewerdave

I've got 7% built into my spreadsheet for cost of living increases after 65 !! And only 2% for pension increase -makes for sobering reading if we both survive beyond 75 !!!! On one particular what if projection I've done, we will be trading down to cardboard boxes by 80.

Aegis

I'd love to see what basket of goods they've used to get an 8% inflation figure.

JezR

The figures originate from Key Retirement, an equity release company. Their press release is here. Unfortunately they don't break it down that much.

kangoora

What a surprise, an equity release company has paid for a report which shows pensioner inflation is running at 4 x actual inflation.

Reminds me of a consultancy firm I commissioned for a pricing analysis on a major bid we were running. It was totally unexpected to find our technical solution was the most future-proof and great value for money