Rising inflation means retired households in the UK have seen their cost of living increase by £800, according to new figures.
This could lead a number of homeowners to consider taking out an equity release plan in a bid to boost their finances.
According to MGM Advantage, the latest annual increase of 3.7 per cent in the Consumer Price Index means people aged between 65 and 74 years must now spend £23,000 per year.
The organisation also said the inflation rate means people aged over 75 years must spend £13,150 a year to maintain their lifestyle, an increase of £400.
Aston Goodey, sales and marketing director at MGM Advantage, said: "Inflation is a real menace and it is pushing up the cost of living. This is particularly difficult for retired households where they often have fixed incomes.
"Increasingly, they will need to take more proactive steps to tackle the risk of inflation through for example, asset backed annuities that keep some funds invested in the stock market allowing for potential growth."
Those who own their own home can also boost their income with cash taken from the value of their property through the use of an equity release plan.
Posted by Richard Planner
