- Friday, 5 March 2010Retired households may require
IVA advice to help them meet dramatic increases in living costs as a result of rising inflation.
MGM Advantage estimates that the average retired household, where the main occupant is aged 65 to 74-years-old, needs to find an extra £774.70 a year to maintain the standard of living they enjoyed just 12 months ago.
The organisation states that the growing cost of living in retirement means the traditional, fixed-level annuity is becoming less appealing.
Aston Goodey, sales and marketing director for MGM Advantage, said January saw the biggest year-on-year Consumer Price Index increase "since records began", which is impacting on the income available to those in retirement.
"Until recently, conventional fixed level annuities have been popular as the 'safe' option at retirement because they offer a guaranteed fixed income for life," he said.
"However, the risk of not inflation-proofing their income is making more people explore alternative solutions."
According to online pawnbroker Borro.com, an increasing number of retired people are pawning art, sculptures and jewellery to free-up cash.
Borro reports that it has seen a 160 per cent rise in the number of pensioners selling goods in the last 12 months.
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