The cost of living crisis is set to continue into 2023 making it important for everyone nearing retirement age, or those already drawing their State Pension, to understand the implications of changes that could affect savings, pensions and investments.
Inflation may have passed its peak of 11.1% in late 2022, but just because it may be lower in future does not necessarily mean that prices will return to where they were. It simply means they will just be rising more slowly.
Steven Cameron, Pensions Director at Aegon, warns that the UK Government has a “difficult decision” to make over the future sustainability of the State Pension Triple Lock following the upcoming 10.1% April uprating. He also speculates that the State Pension age could go up to 68 a decade earlier than planned, affecting retirement plans for millions of workers.
