Inflation breaks through 3% for “sandwich generation”

Comment from Alistair McQueen, Head of Savings & Retirement, at Aviva.

“Headline inflation (CPI) has hit 3.0% for the first time in over five years1. This spike however masks even greater pressures being felt by the “sandwich generation” – those aged 50 to 64, often carrying caring responsibilities for younger and older family members. Aviva’s Age Inflation Index2 shows that price rises are hitting this generation the hardest – rising by 3.06%.

“This follows recent Aviva research which revealed there are 2 million over-50 workers with caring responsibilities for other family members3, and that credit card debt held by the over-55s is at a six-year high4. Today’s inflation hike also means a rise in the Bank of England interest rate is now highly likely, potentially putting even greater pressure on those reliant on credit.”

“Recent commentary has focused on the financial pressures facing the young. However, today’s data reminds us that the reality is rarely as simple as the headlines often suggest. Economic times are tough for all ages at present.”

-ENDS-

Aviva Age Inflation Index – September 2017

  Under 30 30-49 50-64 65-74 75 and over Headline
Age-based inflation 2.86 2.98 3.06 3.01 2.89 3.00

Sources:

1 https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2017

2 Aviva’s Age Inflation Index presents age-based inflation determined by the typical shopping habits of different age groups.

3 https://www.aviva.com/media/news/item/retirement-plans-at-risk-almost-2-million-older-workers-juggle-supporting-family-with-own-financial-future-17826/;

4 https://www.aviva.com/media/news/item/uk-aviva-data-shows-credit-card-debt-among-over-55s-reaches-a-six-year-high-17833/

Media Enquiries:

Fiona Whytock, Senior Media Relations Manager, T: +44 (0)7800 692299 E: Fiona.whytock@aviva.com  

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