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What happens to private pensions in times of crazy inflation?

1 reply

QuebecBagnet · 27/08/2022 20:51

So I know state pensions are/can be increased but what about private pensions?

because if you retire at 65/67 you could potentially have 20 years of retirement and if for example your monthly private pension is £1000 a month you might think you’ll be ok with your state pension added in and hopefully no mortgage. But then all of a sudden your energy bills are £800 a month that’s pretty shit.

so do private pensions just stay the same for the whole of retirement regardless of inflation?

OP posts:
Scottishflower65 · 27/08/2022 21:42

Depends on the scheme. Most have some inflation proofing built in. This can range from full inflation CPI increases to a cap of say 2.5%. So if it’s a low cap, you could find yourself in the scenario you describe if we had several years of high inflation.

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