“The State Pension remains a foundation stone for many over-65s’ retirement plans, who are now worried that the suspension of the Triple Lock could become permanent.
“Rising prices and poor returns on deposit accounts will dismay pensioners whose only or main source of retirement income is the State Pension. Many will be financially squeezed as the cost of essential items like home heating rise while returns from savings accounts – which typically form the bulk of retired people’s savings - remain low.
“Rising inflation and poor returns from cash present a dilemma for people in retirement. They might have to drawdown their savings more quickly than they would want or switch some of their savings into higher-risk assets. These can offer the prospect of keeping pace with inflation but can be hit hard if investment markets fall.
“As always with retirement planning, the sensible thing to do is to try and plan ahead to make sure wherever possible that other sources of retirement income can be accessed if and when needed. Consulting a financial adviser about your retirement plans is a good way to understand your retirement options, and how you might ensure your retirement income keeps pace with inflation.”