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Pensioner Inflation Of 34% In Last Decade!

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The cost of 'blue rinse' must have shot up recently! :P Will be interesting to see what they class as 'good and services' in the report though! Good job all these pensioners at least own their own homes then, having been sold those fantastic 'endowment' policies all those years ago! :P

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That's really not stating anything.

34% is only fractionally more than what you would get if you compounded the official CPI figures over 10 years (average 2%)

It is a ******** figure. The stuff that pensioners have to buy - council tax, water rates, energy have gone up far more than 34% over the last 10 years. Pensioners have probably experienced 34% inflation over the last 3 years alone.

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Pensioner inflation 2.97% per year

Inflation rate: 2.4% ish (1997-2003)

Some of that inflation could be fuel costs which could reduce again as the market adapts to changing world oil price conditions. Their houses also went up in value though ;)

Edited by Della

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It is a ******** figure. The stuff that pensioners have to buy - council tax, water rates, energy have gone up far more than 34% over the last 10 years. Pensioners have probably experienced 34% inflation over the last 3 years alone.

I think you'll find pensioners still eat, wear clothes, go on holidays and get their radiators fixed by a plumber... all things that have dropped in price in the last decade. Everybody else also has to pay council tax, drink water and heat their homes. I don't see why pensioners should experience inflation that different from the rest of us.

Edited by IamSpartacus

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I think you'll find pensioners still eat, wear clothes, go on holidays and get their radiators fixed by a plumber... all things that have dropped in price in the last decade. Everybody else also has to pay council tax, drink water and heat their homes. I don't see why pensioners should experience inflation that different from the rest of us.

You don't understand inflation very well.

The CPI figure is an average measure for an average person - although very questionable if it is average at all. It is weighted rather favourably towards the consumer goods that have been reducing in price over the last 10 years

Everybody's experience of inflation is different.

Your average 20-something that lives at home and doesn't pay his parents any rent and spends all their money on buying gadgets, clothes and going out experiences a very different inflation rate to a pensioner surviving only on their pension, unable to afford many new clothes, new TV because all their money goes on food and bills. Their experience of inflation won't have been anywhere near 3% over the last 10 years.

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You don't understand inflation very well.

The CPI figure is an average measure for an average person - although very questionable if it is average at all. It is weighted rather favourably towards the consumer goods that have been reducing in price over the last 10 years

Everybody's experience of inflation is different.

Your average 20-something that lives at home and doesn't pay his parents any rent and spends all their money on buying gadgets, clothes and going out experiences a very different inflation rate to a pensioner surviving only on their pension, unable to afford many new clothes, new TV because all their money goes on food and bills. Their experience of inflation won't have been anywhere near 3% over the last 10 years.

I understand inflation very well. I think you misunderstand where most of a pensioner's money goes. Yes, fuel has gone up but retired people tend to live in smaller properties. Admittedly they feel the cold more and have to heat all through the day but they still probably spend less than a family in a 4 bed house. They don't drive as much or commute long distances so haven't been hit by rises in fuel. Council tax isn't included in inflation figures for anyone, and even if it were the smaller properties tend to be in lower tax bands. My grandparents still have TVs, a stereo, a washing machine etc. They still buy new furniture when the old stuff wears out. I think you have a distorted view that the average pensioner in Britain is some penniless old dear sat shivering in the cold counting her last few pennies...

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I think you have a distorted view that the average pensioner in Britain is some penniless old dear sat shivering in the cold counting her last few pennies...

Some are, some aren't. The early-retired, globe-trotting, huge-property owner much quoted by some people on this site is a grotesque caricature. Of course some people are in that fortunate position, but many aren't. There are plenty of older people who never bought property and who do eke out a living on just a state pension.

I hate the way that people are pigeon-holed on this website - whatever side of the fence they're on.

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The cost of 'blue rinse' must have shot up recently! :P Will be interesting to see what they class as 'good and services' in the report though! Good job all these pensioners at least own their own homes then, having been sold those fantastic 'endowment' policies all those years ago! :P

But they don't (http://www.mirror.co.uk):

"MIILLIONS of homeowners are reaching retirement age with the millstone of a large mortgage still hanging around their necks.

"More than 2.4 million of the over-60s - 40 per cent - still have a home loan, with a million owing £50,000 plus."

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But they don't (http://www.mirror.co.uk):

"MIILLIONS of homeowners are reaching retirement age with the millstone of a large mortgage still hanging around their necks.

"More than 2.4 million of the over-60s - 40 per cent - still have a home loan, with a million owing £50,000 plus."

Yes dude ... I was being sarcastic but don't think I used the right emoticon! My parents-in-law are a couple of the lucky ones whose endowment did actually cover their mortgage, and gave them some profit too, but I'm aware of the millions who now suddenly have to find extra cash in their later years to pay it all off! Can't wait to see the sh!t hit the fan in the coming decades with some of the IO mortgages being taken out these days and no repayment vehicle insisted upon!

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Some are, some aren't. The early-retired, globe-trotting, huge-property owner much quoted by some people on this site is a grotesque caricature. Of course some people are in that fortunate position, but many aren't. There are plenty of older people who never bought property and who do eke out a living on just a state pension.

I hate the way that people are pigeon-holed on this website - whatever side of the fence they're on.

Well said Brassfarthing. It gets my goat too. In my opinion it's as ludicrous and nasty as stereotyping particular races.

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Lots of pensioners I know don't go on holiday, buy new clothes, TVs, cars, or spend much on anything. I know one woman in her 80s who lives on an income of £9K per annum, but who has to find £1800 a year for her council tax and nearly as much again for for heating, lighting and water.

Her crime? Living in a big house bought in the 1950s for £900 and now worth £500K. Council tax is levied indiscriminately and is simply based on the size of one's house and not on an ability to pay. Some will say she should sell her home of over half a century; others might reasonably say 'well why should she?'

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Lots of pensioners I know don't go on holiday, buy new clothes, TVs, cars, or spend much on anything. I know one woman in her 80s who lives on an income of £9K per annum, but who has to find £1800 a year for her council tax and nearly as much again for for heating, lighting and water.

Her crime? Living in a big house bought in the 1950s for £900 and now worth £500K. Council tax is levied indiscriminately and is simply based on the size of one's house and not on an ability to pay. Some will say she should sell her home of over half a century; others might reasonably say 'well why should she?'

If she planned to live 20 more years then she could use the money to give her an income of £47210.75 a year for the rest of her life. Assuming she invests the money at 5% and uses all the money. She only has a 1% chance of living that long, but not worrying about money all the time would probably help her attain that goal..

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If she planned to live 20 more years then she could use the money to give her an income of £47210.75 a year for the rest of her life. Assuming she invests the money at 5% and uses all the money. She only has a 1% chance of living that long, but not worrying about money all the time would probably help her attain that goal..

As you get older, financial considerations are not the only type you think about.

she may have a lifetime of memories, or feel too frail to upsticks and move. she should be able to live there in dignity. Poll tax was far, far fairer than the current system.

Edited by Casual Observer

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As you get older, financial considerations are not the only type you think about.

she may have a lifetime of memories, or feel too frail to upsticks and move. she should be able to live there in dignity. Poll tax was far, far fairer than the current system.

She is sitting on a mountain of money though, if she spent £70,000 on a flat and £30,000 on mobility aids she would still have £39568 a year to spend. With all that money she could go out and make new memories which would make her old memories seem boring by comparison.

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She is sitting on a mountain of money though, if she spent £70,000 on a flat and £30,000 on mobility aids she would still have £39568 a year to spend. With all that money she could go out and make new memories which would make her old memories seem boring by comparison.

Is this a wind up, or do you really not understand what a lifetime's memories mean to an Octogenarian?

Money is not the most important thing in people's lives. Perhaps it is, to the younger generation.

Edited by Casual Observer

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Is this a wind up, or do you really not understand what a lifetime's memories mean to an Octogenarian?

Money is not the most important thing in people's lives. Perhaps it is, to the younger generation.

I do not claim that money is the most important thing in life, there are plenty of more important things, but apparently someone was claiming this person was hard done by and poor really simply because the way she choose to live her life in a way that meant she had very little money even though she potentially has tons of money, although I should point out I am philsophicly opposed to taxation.

I realise that old people consider their memorys important, but I am of the opinion that is genereally because they never do anything, it seems to me that when people hit retirement they genrally retire from any and all interesting activity, which is a shame, life is for living.

Edited by Della

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I realise that old people consider their memorys important, but I am of the opinion that is genereally because they never do anything,

She's an Octogenarian. Try to remember the comments you made today, when you turn 86.

You'll probably not feel up to skiing and clubbing.

, although I should point out I am philsophicly opposed to taxation.

Hmm, that's interesting. How do you think refuse collection should be paid for, or the police? Or teachers?

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She's an Octogenarian. Try to remember the comments you made today, when you turn 86.

You'll probably not feel up to skiing and clubbing.

Is she frailer than this guy?

http://en.wikipedia.org/wiki/Stephen_Hawking

You don't have to be skiing to be doing something that one would regard as interesting and memory worthy.

Hmm, that's interesting. How do you think refuse collection should be paid for, or the police? Or teachers?

Refuse collection - collection fees. That's going to happen here in a few years anyway

Police - fees, charity or insurance. It's about £50 per person per year at the moment for that

Teachers - tuition fees or charity. As it is done in a lot of the world currently

Edited by Della

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Is she frailer than this guy?

http://en.wikipedia.org/wiki/Stephen_Hawking

Possibly not, but she may not quite have the intelligence to be a Nobel prize-winning physicist. And if she were, she might want to write her next book from the comfort of her home.

I think she's entitled to just live quietly in the last few years of her life if she wants to, without being branded as boring!

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The cost of 'blue rinse' must have shot up recently! :P Will be interesting to see what they class as 'good and services' in the report though! Good job all these pensioners at least own their own homes then, having been sold those fantastic 'endowment' policies all those years ago! :P

well this is just utter sh1te!!!!

It's WAY more than that....I feel sorry for them to be quite frank.They come from a generation where discipline and honesty were valued.They've had a couple of token 1-off fuel payments but the likes of council tax has been rising at 5%p.a.....and now they have fuel bills doubling within 2 years.

surely their offspring(the BTL brigade) ought to help them out by paying a little bit more tax to cover their parent's heating bills...or are they going to let them freeze to death because they'll get the inheritance a bit quicker(and blow it all on crap kitchens and SUV'S)

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Possibly not, but she may not quite have the intelligence to be a Nobel prize-winning physicist. And if she were, she might want to write her next book from the comfort of her home.

I think she's entitled to just live quietly in the last few years of her life if she wants to, without being branded as boring!

One of the differences I have noted between French and British culture is that the French see boredom in old age as a major problem, whereas the British seem to revel in it. If I get bored I think back to things that have happened in the past too, the easist way to get out of that is to do something. It's not an insult to her to say that she must be basicly bored.

Edited by Della

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Guest Alright Jack

What is all the fuss about?

34% over ten years is only 2.9699% per annum inflation. About RPI. You guys are so easy fooled. If inflation was really only that then there would be no problems.

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      • down 5% +
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