Fuel Costs: OAP Bills 'Doubled Since 2005'
Older people have seen their energy bills more than double since 2005, research from Saga has found.
The average annual spend on fuel bills for the over-65s soared to £1,355.90 last year, amounting to more than twice as much as the average of £668.98 in 2005, the group's analysis found.
Across the UK, some 12.9 million pensioners spent an estimated £17.4bn on electricity and fuel bills in 2012, Saga said.
Saga said that its recent research among the over-50s showed that almost three in five (58%) are worried about heating costs this winter and more than a third (35%) are already struggling with heating bills.
Its figures do not take into account the effects of a recent string of price hikes announced by energy companies, pushing costs up further this winter.
Research by MoneySupermarket.com found earlier this month that energy customers on standard tariffs could be facing average quarterly bills of £530 in the coming months. Consumers typically use around 40% of their annual energy consumption during winter.
Saga has argued that older people are disproportionately affected by increases to living costs, as they are often trying to live off a fixed income or savings.
Ros Altmann, director-general of Saga, said that its research had found that 29% of older people are raiding their savings every month to make ends meet.
She said: "We are still to feel the full effects of the latest price rises so energy costs are likely to put even more of a financial strain on households in 2013.
"While incomes have increased in the last seven years, they have not kept pace with the rate that energy and fuel costs have risen, meaning that people are spending more of their income on fuel.
"This is especially true for older people who are often on lump or fixed incomes or whose savings income has fallen."
The findings come after Prudential said this week that people planning to retire this year expect to be living off the lowest average incomes recorded in six years.
This year's retirees expect to have a typical annual income of £15,300, making them around £3,400 a year worse off than workers who retired in 2008, Prudential said.
Financial information website Moneyfacts also reported this week that annuity rates, which set the size of someone's retirement income, plunged over 2012 for men at their steepest rate in 14 years.
However, retirees were given some welcome news on Thursday, when the UK's top statistician announced that a key measure of inflation which is often linked to retirement incomes should remain unchanged.
Many annuities are linked to RPI (Retail Prices Index) and even a small change could have knocked thousands of pounds off someone's income over the course of their retirement, pensions experts had warned.
Saga used analysis of official figures for its research.
what do you think?
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Am 26 years old I carnt imagine the cost of living and bill prices by the time am in my 60s I think the country will be 3rd world by then
Its scary tin of beans will be a tenner and a pint 20quid in another 40years its freighting
Yes Nick our road,rail and air networks are already becomming 3rd world while the emerging Asian countries are pressing ahead with infrastructure projects that leave us way behind.
Nick wrote "Its scary tin of beans will be a tenner and a pint 20quid in another 40years its freighting" But Nick My first pint was 10p now £3.50 a pack of fags 9p now I believe £7.00 and increase of 35 x and 72 x. My first television was £60.00 for a 13 in small portable now you can buy a 40" for £300.00 In the same time my wages have increased over 100x My first second hand car a real wreck was £400.00, I can still buy a second hand car far better than my first for £400.00 In real terms many item are now far cheaper than they were 40 years ago, compared to wages
rents in 1977 c/tax water rent £7 not all things
The problem is the basket of basics seems to have exceeded inflation whilst what may be deemed luxury items have gotten cheaper. Also whilst I have not checked the figures I suspect that net income was greater as the tax was more towards direct taxation than the myriad of stealth taxes
Blue side Peoples expectations and the associated costs are greater in 1977 most did not have a car, there were no mobile phones, I pods, computers etc etc. You wore clothes until there wore out. you had one TV in the house etc etc I paid 1/3 of my wages in rent and a further 1/3 in train fares leaving the balance to live
Windows Live User
Yes, I recall my first car was only 9year old and only cost me £45.00. It needed a little work done to the ball joints and suspension on one side, a bit of floor to be welded, all of which was soon fixed. It was the love of my life way back then, and filled up with students off we went for a swift half at lunchtimes. All my pals contributed the odd few shillings for fuel and costs to keep us all mobile. Never once let me down, good old 105E. Halcyon days.
105E with the side valve engine, that sounded like an asthmatic on a bad day on tick over My first car too, shortly followed by an A30, the passengers used to have to get out on hill of any gradient and walk up, down hilll there was allways thar excitement that the breaks may not hold
We already are for a lot of the unemplyed who will never get a job in thier lifetime!
Only last week a Government minister said that any pensioner with an income of more than 8,000 pa is well off and should lose the Winter fuel allowance. Still at least foreign aid is protected from cuts, pass me another blanket.
Many of these overseas charities pay 50% plus of this money to consultants many of these so called experts would have worked for the charities at one time, then set up a consultancy firm and got paid 10x a much to tell the charity staff what they already know the definition of a consultant is Someone Who Borrows Your Watch To Tell You The Time
Windows Live User Porsche built tractor at one time and lamboughini still do
Very nice of them to think of us oldies but I'm sure that the price of fuel and energy has gone sky high for everyone and, correspondingly so has the profits of the energy companies. Please don't single out or marginalise the elderly, after all we're all in it together (what we're in is open to conjecture!)
Very well put.
Nick in those days we worked 44/48 hours a week paid %35 tax but we did not have to stretch the money so far, if we went back to those days and conditions we would all be rich
The cost of fuel has not gone up at all. The cost of windmills and bonuses for useless execs plus back handers for MPs and councillors and civil servants is bleeding us dry. Absolute crooks.
Blueside, I imagine when you say gotten, you mean become.
The lunatic charge for renewable energy and the closure of efficient coal fired power stations has added rather more to our bills than govt admits. And all for nothing given the tiny contribution we make to carbon emissions
What's the point of coal powered power stations when we have to buy coal from abroad the Tories closed our mines remember
Shirley. So what do we use ?? Most of our gas has to be bought from Russia who could turn off the supply at the drop of a hat. And we buy our windmills from Germany so I don't see your argument
If i remember rightly when north sea oil and gas was discovered we would all be getting it for free.What happened to that one then?
Paying benefits ?
Maggie thatcher and the Tories sold it all off
It just went up in smoke !
Margaret Thatcher used the money to smash the unions destroy British industry and fight a avoidable war in the South Atlantic .As we can see the results today Tories getting it all with tax free havens and money going out of the country like Niagara Falls .
Think you'll find everyone's bills have doubles since then so we're all in the same boat it's not just the pensioners
The way things are going the only heating allowance will be for the Crematorium !
Commit a crime that has a three month jail term. Free food, free heating, and companionship. But it's already happening, the fastest rise in inmates is in the over 60's.