The effect of inflation on retirement incomes is a major concern for British pension savers, according to Lincoln Financial Group.
Research by Lincoln found 55% of those approaching retirement are concerned inflation will leave them unable to afford the lifestyle they want in retirement.
With more than half of UK adults relying on a company or personal pension to pay for their retirement, Lincoln says it is important people know how to get the most out of their savings.
"With recent decreases in inflation pensioners will hopefully feel they are able to stretch their retirement funds a little further as the cost of living decreases," says Lincoln's head of products and marketing, Simon O'Connor.
"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."
Pensioners still see a relatively high rate of inflation compared to younger people.
Over 75s are suffering from a 5.4% rate of inflation, according to figures from Alliance Trust, while 65 to 74-year olds have seen prices rise by 4% over the past year. This compared with 3% for the nation as a whole.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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