Jun 25 2008
People saving for retirement have been warned about the potential for rises inflation rates to erode their assets.
According to Fidelity International, anyone setting money aside regularly risks seeing their future spending power decrease considerably if they continue to make flat-rate contributions.
With this in mind the financial services firm has urged retirement savers in the UK to increase their contributions in line with inflation, which the Bank of England recently warned could soon top four per cent.
David Dalton-Brown, head of Fidelity International's direct business, said: "With consumer price inflation in the UK forecast to top four per cent, there is a real danger that many savers' retirement plans will go off track because they fail to increase their regular contributions."
Research by Alliance Trust suggested recently that pensioners are among those being worst affected by the rising level of inflation in the UK.
