Pensions - Articles - Comment on Bank of England inflation announcement

 “For the third month in a row inflation is above 2%. Coming from a low inflation environment in recent years, people will have to get used to a period of higher sustained inflation and what this means to their pockets. With a recent poll showing over half of under 60s are unaware of the current rate of inflation, this is clearly not an issue people are tuned into.

 “With the impact of inflation felt most keenly by pensioners, the issue of their spending power and the level of state pension increases has become a political hot topic. Politicians desperate to appeal to the grey vote and prevent pensioners slipping down the poverty ladder are sure to cover this as a matter of priority when they publish their manifestos next week.

 “Inflation can hit people on fixed incomes hard, particularly pensioners. As people are living 20 or more years in retirement they need to think seriously about how they can protect themselves from the ravages of higher inflation eating away at their income and savings. Planning ahead and investing to outstrip the destructive effects of inflation could help maintain purchasing power. Getting professional advice could make all the difference.”