The firm’s Silver Retail Prices Index also suggested over 55s face additional costs of £918 per year.
The increase measured by the Silver RPI was broadly similar to that implied by headline RPI.
Between January and March 2011, over 55s on average experienced inflation at 0.03% below headline RPI, in cost terms suggesting they are £2.63 a year better off than the average person.
This changes with age with a typical over 75 year old experiencing price rises at 0.2% less than headline RPI suggesting they are £24.13 a year better off.
The research claims the smaller increase in prices experienced by a typical over 75 year old in the first quarter of 2011 can be attributed to the fact they spend a greater share of their income on products that are either falling in price, or rising only modestly. For example, over 75s spend a great proportion of their income on food than the population at large and food prices fell by 1% in March 2011.
Gordon Morris, managing director of Age UK Enterprises, said: “These findings must be seen against a context of the past three years. In this time, those in later life have consistently experienced price rises at a higher rate than the general population or predicted by official measures.
“At an age when a significant number of long-term financial decisions are being made, being able to accurately track the cost rises experienced by those over 55 is crucial.
“The inflation experienced by those in later life is getting closer to that experienced by the general population but rising costs continue to be an issue. This means it is more important than ever for consumers to get the best value for money.”
Erik Britton, director of Fathom Consulting, said: “When people plan for retirement, they need to form a view on how much money they will need to get by from one year to the next. In order to do this accurately, it is important that they have access to reliable information on changes to the cost of living for people in their own age group, rather than the population as a whole.”
Dean Mirfin, group director at Key Retirement Solutions, added: “It is constantly forgotten when we look at increases in RPI and the cost of living, the impact it has on those more reliant on fixed income and whose bulk of their expenditure tends to go on the key elements that makes up the RPI figures.
“Only a number of pensioners are going to be able to carry that ongoing expenditure without having to look at alternative funding for their retirement. The future as we stand today looks fairly bleak from an affordability perspective for pensioners. The prospect is that it’s only going to get worse and pensioners are going to face some very tough decisions.”
