Age UK has estimated that the elderly are subject to much higher rates of inflation than the younger population.
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Inflation and the elderly

Age UK has estimated that the elderly are subject to much higher rates of inflation than the younger population.

They have estimated that the real rate of inflation for those between 65 and 69 is 3.3% above RPI which is currently 4.5%.

This makes the real rate of inflation for these people to be 7.8%.

This increases with age and for those over 75 it is estimated to be 8.6% per year.

Life becomes even more expensive for those reaching 85 when many will need care. Anyone with assets of more than £23,250 will have to fund the full costs of their care which can range from £30,000 to £50,000 per annum.

It is thought that over 40% of people now self fund their care in full.

There is increasing evidence that shows those who self fund their fees are in fact subsidising those funded by the Local Authority.

In some care homes those funding their own care are being charged £200 more each week for the same standards of care as those funded by the local authority.

Care home fees can escalate as much as 10% per year and this rate of inflation is almost certainly higher for those funding their own care than for those funded by the local authority.

In effect they are subsidising the whole system and the situation can only get worse as Local Authorities have to trim their budgets.

Photo credit: ccharmon/Flickr

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