Rising inflation can erode the value of assets reducing spending power
The state pension is inflation linked so look to the full amount you are entitled to
Don't let inflation fears dictate your asset allocation strategy
If you have a good income a slight rise in the cost of basic goods and services is unlikely to be a great concern. But higher inflation still has financial implications for you, especially if you are retired. So it is important to establish what parts of your outgoings may rise and by how much.
“We look at all [our clients’] expenditure and, in particular, how much they spend relative to their liquid wealth,” explains Svenja Keller, head of wealth planning at Killik & Co. “And some items of expenditure rise at a higher rate than standard inflation, for example, school fees and long-term care costs.”