Inflation could prove to be a real problem for older people, which may lead them to need debt management services, claims one expert.
Dr Ros Altmann, independent pensions expert and a governor of the London School of Economics, says the Bank of England has ignored the needs of older people, who have seen their income reduced.
"The cut in interest rates that pensioners have suffered means that they are getting much less income each week than they would have been used to," she continues.
Dr Altmann says pensioners are far from experiencing deflation and are instead facing high inflation, which needs to be taken into consideration.
The expert believes an increase in state pension may be of benefit to those who struggle most, which will be part of the government recognising that this is a vulnerable group of people.
According to the Institute for Fiscal Studies, older and poorer households are facing much higher average inflation rates than younger and richer ones.
The former have tended to suffer most from high annual inflation in food and domestic energy costs, while the latter have tended to benefit most from cuts in mortgage rates and falling motor fuel bills.