The current difficult economic situation is also encouraging a more deliberate approach to retirement, with only 15% of employed people admitting to a lack of retirement planning, compared to 23% of those who are already retired.

More than a third (34%) of those who have planned for the impact of inflation on their retirement spending power believe the State Pension will keep pace with rising prices, while 33% believe their company pension will keep pace with rising prices.

INFLATION INCREASED DRAMATICALLY

In addition to considering the State Pension and company pensions, 30% of those who have planned for inflation say they have anticipated the need for their income to rise each year and have approached their savings accordingly.

A quarter (26%) have considered how much spending they might have to cut if inflation rose sharply. The main reason for failing to account for inflation was its unpredictability – 31% said they did nothing because they couldn’t forecast it, and 30% said they were caught off guard by the recent rise in inflation after years of stability.

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