State pensioners to be £13,000 poorer amid inflationary spike

Inflation has hit a 40-year high of nine percent with potentially significant consequences for Britain's oldest generation

Published

State pensioners face being £13,000 worse off amid spiralling inflation, according to estimates.

As inflation soared to a 40-year high of nine percent, pensioners are set to be one of the worst affected groups.

After ministers decided to freeze the pension triple lock, retired Brits will have to contend with a 3.1 percent increase instead of the eight percent jump that was predicted for this year.

A general view of people in Derby.
A general view of people in Derby.

For anyone turning 66 this year, projections are showing a £13,000 fall in income by the time they're 85, according to The Telegraph.

Rising energy bills on top of the relative fall in pensioner income, have raised concerns about the financial security of older Britons.

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The same charity makes a grim prediction as a result of the findings, warning that 8.5 million UK homes may be driven into fuel poverty.

This could be made worse by the fact that the Bank of England is now predicting inflation to climb into double figures this year.

This may come with some long-term benefits for pensioners however.

Next year's state pension is likely going to be calculated off the back of the inflationary measures brought in this year. As such there may be a significant uplift to the state pension next year.

"This could grant state pensioners a bumper increase under the triple lock next April", Steven Cameron, Pensions Director at Aegon, told Express.co.uk.

"But this is only after what will be a very difficult year and a long, cold winter for many.

"It is still unclear whether the Chancellor will provide temporary or targeted support for those in greatest need.

"In the meantime many individuals will be looking to cut back on ‘discretionary’ purchases where they can."