The cost of living for elderly people is rising at more than twice the rate of other households, research has showed.
People aged between 65 and 74 saw their annual expenditure increase by around 9% a year between 2002 and 2006, more than double the national average of 4%, according to insurer Prudential.
The situation is even worse for people over 75, who saw their cost of living soar by around 10% a year during the same period.
The group said the steeper increase in expenditure for older people was caused by the higher proportion of their income they spent on food and drink, the cost of which is rising at up to five times the rate of inflation.
It said the average household spent around 10% of its annual income on food and non-alcoholic drink, but this rose to 13% among people aged between 65 and 74, and was 15% for people over 75.
But it warned that the jumps in the cost of living being faced by pensioners were being made worse by the fact that the average pensioner income was increasing by just 3% a year.
More than two million people are permanently overdrawn, and the average worker goes into the red 27 days after payday, a survey shows.
Almost half of working Britons — more than 10 million people — have slipped into the red at least once in the past 12 months, including 2.1 million people who are continually overdrawn, according to price comparison site Moneysupermarket.com.
Those who are unable to stay in the black go overdrawn on the 20th of the month, on average — 27 days after payday, as most people are paid on the 24th day of the month.
Kevin Mountford, head of current accounts at Moneysupermarket.com, said the findings were not surprising, particularly as the Bank of England has hiked the base rate five times in the past year.
“Consumers are no doubt feeling the squeeze,” he said.
Nine out of 10 people claim the cost of living is rising at nearly three times the rate of official inflation figures, a survey shows.
Despite Office of National Statistics (ONS) figures showing inflation is currently running at 2.5%, consumers feel they are really facing price hikes of 7.3%, according to financial website Fool.co.uk.
Overall two out of three people say their personal rate of inflation is between 4% and 9%, while one in five claim it is between 10% and 15%.
The cost of living has risen at its fastest rate for at least 10 years, forcing the Governor of the Bank of England to write a letter of explanation to the Chancellor for the first time.
The Consumer Prices Index (CPI), the official measure of inflation, rose to 3.1% last month, more than 1% above the Government’s target for inflation.
Governor Mervyn King has to write an open letter to Gordon Brown if CPI hits more than 1% above or below the 2% target.