Personal Finance

State pension: How to boost your payments beyond the 3.1% April increase – act now

Inflation to hit retirees

Pensioners will likely need to carefully evaluate their retirement options as inflation problems are set to impact their income well into 2022. In mid-November, inflation rose to 4.2 percent, more than double the Bank of England’s two percent target.

Maike Currie, an investment director at Fidelity International, warned retirees are facing difficult months ahead of them as inflation is expected to rise further.

She said: “For many households life is rapidly getting more expensive with the cost of transport, household services, and hospitality, the biggest contributors to the rise.

“But this is just the beginning, the Bank of England expects prices to keep accelerating until inflation reaches a peak of around five percent next spring, thanks to a toxic combination of supply chain disruption, rising energy prices and too few workers for too many job openings pushing prices higher.

“The big unknown remains: is the spike we’re seeing temporary as demand rebalances post Covid, or are price rises becoming more entrenched and permanent.


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