Summers are generally a chance to relax in better weather, enjoy some time off and potentially get abroad. This year, however, all of these come with added stress for many households and businesses.
The implications of steadily rising inflation on the cost of living, particularly energy and food prices, are focusing minds across the country. With wages lagging behind, the impact on every level of financial planning – from everyday budgeting and saving decisions to those all-important holidays – is a reality for most.
If you are near retirement, you may be concerned both about timing stepping away from work and funding your lifestyle in the current economic climate. Every month this year has seen another hike in inflation, with the Bank of England predicting a two-year wait for a return to January 2022 levels. Our feature in this edition of our newsletter considers the impact for those who may need to reassess their options.
Although the rise in inflation has meant interest rates have started to creep above zero, savings account holders are unlikely to have much of those increases passed on to them. Shareholders could be in the best position this year with dividend payments predicted to grow further from their strong recovery in 2021. However, how you think about investment returns may need to shift when measured against those inflation figures.
Other stories for this edition include:
- Could you join the one in five?
- What I wish I’d known – lessons from the other side of 50
- Charitable giving – doing it right
