Pensioner inflation 'may exceed headline rate'
19/02/2010
Topic: Insurance & protection
Pension holders might have to put up with a rate of inflation that is larger than the country's overall headline rate, according to one expert.
While the Office for National Statistics has this week reported that CPI inflation stood at 3.5% in January, Martin Bamford, Chartered Financial Planner at Informed Choice, feels that this could prove "misleading" in a way.
He said: "Inflation is usually much higher than the published rates for people in retirement."
According to Mr Bamford, this may occur because "the types of goods and services consumed by older people tend to suffer much higher price inflation".
The expert also discussed some of the options that may be open to savers hoping to combat high inflation, which might prove problematic for some in the medium term.
He feels that cash might still prove a decent choice unless people are willing to take on investment risks.
Posted by David Shuker.
While the Office for National Statistics has this week reported that CPI inflation stood at 3.5% in January, Martin Bamford, Chartered Financial Planner at Informed Choice, feels that this could prove "misleading" in a way.
He said: "Inflation is usually much higher than the published rates for people in retirement."
According to Mr Bamford, this may occur because "the types of goods and services consumed by older people tend to suffer much higher price inflation".
The expert also discussed some of the options that may be open to savers hoping to combat high inflation, which might prove problematic for some in the medium term.
He feels that cash might still prove a decent choice unless people are willing to take on investment risks.
Posted by David Shuker.
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