Pensioners are continuing to feel the pinch with rising household bills despite the recent continuing drop in inflation.
Inflation fell again for the year to March, dropping to 3.4 percent, down from 3.2 percent to February, but older Britons continue to struggle to pay the bills.
Pete Mugleston, MD and money expert at www.onlinemoneyadvisor.co.uk, told Express.co.uk: “Pensioners on fixed incomes may continue to find it challenging to manage day-to-day expenses, especially in categories where prices have not decreased.
“It is unlikely that these lower prices will have a significant impact in offsetting the impact of rising costs that have been apparent over the past year.
“To address the cost of living, it’s crucial to budget wisely, prioritise essential spending and explore longer-term investments in energy-efficient products and appliances.
“Leveraging local community resources, such as food banks and financial counselling services, can offer some relief and guidance in effectively managing increased living expenses.”
State pensioners were given a boost this month as payments increased 8.5 percent, boosting the full new state pension by around £900 a year.
But many household bills have also gone up from April, including council tax, water bills and mobile and broadband.
Professor Andrew Angus, from the Cranfield School of Management, said the latest inflation figures are good and bad news for pensioners.
He explained: “On one hand, prices of essential goods will be rising at a slower pace, gently easing the pressure on household budgets.
“On the other hand, another noteworthy impact of falling inflation is the likelihood that the Bank of England will cut interest rates to encourage economic growth.
“For pensioners this will likely reduce the interest paid on savings – a key element of their income.”
The central bank has held the base rate at 5.25 percent in its latest decisions with some analysts predicting it could start to drop the rate over the summer.
Dariusz Karpowicz, director at Albion Financial Advice, warned pensioners not to misunderstand what the drop in inflation means for their finances.
He said: “The recent inflation data is particularly tough on pensioners, who might find the “lower” inflation rate misleading.
Essentially, lower inflation doesn’t imply falling prices, just a slower rate of increase. Sadly, this distinction offers little comfort as the cost of essentials continues to rise, notably with bills climbing this month.
“For pensioners, the options to mitigate these financial pressures are limited, making it vital to review and adjust budgets wherever possible and seek advice on maximizing income from pensions and savings.”
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