Seniors, Baby Boomers the hardest hit by rising living costs

BABY boomers are among the hardest hit by rising living costs, a new study has found.

BABY boomers are among the hardest hit by rising living costs, a new study has found.

Pensioners and self-funded retirees are spending most of their low fixed incomes on basic essentials. They have little left for so-called luxuries like clothing and appliances, according to analysis from the National Seniors Productive Ageing Centre.

National Seniors Australia chief executive Michael O'Neill said people aged over 70, whose annual income is less than a third of the over-50s average, are disproportionately affected by rising energy, food and health costs.

"When it comes to the cost of living, it's a catch 22 for older Australians," he said.

"This means they can only afford to spend on essentials such as food, energy and health, which year after year are outpacing inflation."

The report, Are Older Australians Being Short Changed?, analysed household spending and found pensioners spend 70 per cent more of their income on electricity and three times more on their health than younger Australians.

"Once those essentials are covered, there's very little left for the things that are actually becoming more affordable such as cars, white goods and clothing," Mr O'Neill said.

He called on policy makers to look behind claims that baby boomers are wealthy.