Retirement & SIPPs
Feb 19 2009

Inflation decrease 'good news for those saving for retirement'

People saving for retirement will welcome news that there has been a fall in inflation, it has been claimed.

According to Simon O'Connor, head of products and marketing at the Lincoln Financial Group, the decrease will hopefully mean that pensioners will be able to "stretch their retirement funds" further as a result of the falling cost of living.

However, Mr O'Connor went on to warn: "Unfortunately not all household expenses are decreasing, so it is extremely important that people budget and plan for their retirement especially with retirement funds suffering in the current market."

Research conducted recently by the Lincoln Financial Group suggested that, prior to the recent inflation falls, 55 per cent of people approaching retirement were worried that they would not be able to afford their lifestyle needs.

The inflation figures may not be so simple, however, with statistics produced by the Alliance Trust suggesting that people aged 75 and over are still experiencing a rate on inflation of 5.4 per cent.
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