Pensions - Articles - The impact on pensions as inflation rises


Commenting on the ONS inflation figures Malcolm McLean, senior consultant at Barnett Waddingham said:

 “According to the latest ONS figures the Consumer Prices Index (CPI) 12-month rate was 2.9% in August 2017, up from 2.6% in July 2017.
 
 “Inflation is now at its highest level in five years. Rising prices for clothes and motor fuels were the main contributors to the rise. The figures sent sterling shooting higher, presumably on the basis that the Bank of England may now be willing to contemplate an interest rate rise.
 
 “Next month’s figures will be used to determine the annual increases in pension and benefit levels. In terms of the triple lock on the state pension it seems likely that price inflation, as measured by the CPI, will exceed both wage inflation (currently running at 2.1%) and the 2.5% underpin.
 
 “It is also interesting to note that the Retail Prices Index (RPI) 12-month rate in August 2017 was 3.9% - good news for members of occupational schemes with RPI ‘hard-wired’ into their scheme rules and those retired people with annuities providing RPI-based increases”
  

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.