To add a bit more substance to this the Pru issued research this week entitled : "RPI gloom for pensioners."
Pensioners retiring this year on a fixed
income could lose 60% of their spending power in the next 20 years
because of inflation.
The figures show that the average person
who retires in 2011 can expect an annual income of £16,600, but if that income
remains fixed it will be worth a mere £6700 in 20 years – effectively a £10,000
pay cut.
Research by Age UK recently found that the RPI for older people averaged 4.6% a year since January 2008, nearly 50% more than the 3.1% annual inflation recorded by the RPI in the
same period.
When the "Baby Boomers are stealing your inheritance" nonsense was at its height not one of the people peddling the story thought to mention the impact of inflation. Strange that. Either they didn't understand its affect (that accounts for most journalists) or it spoilt their nice simplistic story (that accounts for most politicians). Dick Stroud
When the "Baby Boomers are stealing your inheritance" nonsense was at its height not one of the people peddling the story thought to mention the impact of inflation. Strange that. Either they didn't understand its affect (that accounts for most journalists) or it spoilt their nice simplistic story (that accounts for most politicians). Dick Stroud
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