Okay, so it’s flavour of the month in the media at the moment, but we ignore inflation at our peril. This article, while stating the obvious, does throw up some interesting figures. I particularly liked this one:
“At least 42% of 65-year-olds will still be alive when they are 90, making the problem of stretching a retirement pot over 30 years increasingly common. But three decades of inflation at today’s retail price index (RPI) rate of 4.3% will cut the real value of a £1,000 annuity income to just £280. Put another way, that is like a 90-year-old today living on a pension fixed in 1978 when Jim Callaghan was prime minister, Saturday Night Fever was top of the album charts and the average wage was £82 a week.” See:
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