Last week it was announced inflation in the UK has increased to a 30-year high to 5.4 percent. It has caused concern for for many.
Chartered financial planner Makala Green spoke to Express.co.uk about the reprecussion this annoucment might have for pensions.
She warned “many pensions will have difficulty keeping pace” with the current rate of inflation.
However, Makala told Express.co.uk there is an option for pensioners which could help protect their finances against inflation.
She explained: “For those drawing or about to draw a pension, you have the option of opting for or converting your drawdown pension to an annuity.”
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What is an annuity?
It is possible to swap your pension savings for an annuity, an insurance product offering garunteed regular income for the rest of your life.
There are various types of annuity, offering different things.
How much of a payment you will get depends on the savings in your pension pout.
The rate of annuity you will be offered depends on your circumstances and the rate your…
