Fifty Plus generation enjoy the lowest inflation rate?
Sep 1, 2014
According to reports I have read this week, times are good for us Over 50 somethings.
Apparently consumer group Which? has revealed that the fifty plus generation have enjoyed lower inflation than any other age group according to its statistics, based on the Office of National Statistics’ (ONS) spending report.
Interestingly though, Saga, leading travel and insurance company for the fifty plus age group said that these figures could be misleading, as according to their own figures, the cost of living had risen by 28% for the 75 plus age group since September 2007, compared to 23% for the overall population.
As they say, the devil is in the detail; whilst I am sure both reports are correct, it all depends on the source of information and how many variables have been taken into account.
So what should we make of this? Is life truly booming for the boomers or just an ongoing struggle?
Well, if you are a home owner and aged 65 plus, your Which? inflation rate is 1.4% compared to 1.8% for the under 30 age group who typically rent their homes. In this case it’s quite easy to see why the older age group has profited from lower inflation; basically they have benefitted from cheaper mortgage rates compared to those renting who have seen an increase of 2% in rental rates over the last year alone. They may well have age on their side but life isn’t all a bed of roses for those ‘youngens’!
It is a good reminder though that when we hear the government and journalists waxing lyrical about the overall inflation rate, the fact is that this is the ‘average’ rate of inflation and that we as individuals are affected in very different ways; some good, some bad, depending on where and how we spend our hard earned cash.
The Which? Index also shows that baby boomers spend more cash on enjoying themselves than they do on essentials such as groceries. So with the fifty plus generation now accounting for over 22m people; that’s nearly one third of the UK population, this has to be good news for our economy.
The overall government stats show inflation is reducing and at 1.6% in July is well below the Bank of England’s inflation target of 2%. Having said that interest rate experts are predicting rising rates later this year or early next, so it will be interesting to see whether our generation continue to spend and ‘boom’!
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