Please enable JavaScript in your web browser settings, under the site permissions section to unlock full site functionality. Click here for help.

Article Image - LV= Comments on UK Inflation Rate

Posted 25th March 2015

LV= Comments on UK Inflation Rate

The UK's inflation rate fell to 0% in February 2015 from 0.3% in January.

Scroll to keep reading

LV= Comments on UK Inflation Rate

LV= Comments on UK Inflation Rate

The UK’s inflation rate fell to 0% in February 2015 from 0.3% in January.

Steve Lewis, LV= Head of Retirement Distribution commented:“The current economic environment creates a real challenge for someone retiring today. The Governor of the Bank of England has clearly stated that the outlook for inflation in 2015 may well be negative and yet in the next few years inflation will return to target and then rise a little further. The impact on interest rates in the short term has been negative and the knock on effect to annuity rates has been inevitable. Some may therefore take the view that higher rates in 3 to 5 years’ time may provide more attractive conditions for locking into long term guaranteed returns.

“The retiree has to recognise that inflation is perhaps the biggest risk to their retirement income plans. Setting out for a lifetime in retirement based on an expectation that today’s environment will continue would just be wrong. Individuals and advisers need to understand and plan for inflation.

“Pension Freedom regulations coming into force on the 6th April do offer a helping hand to anyone looking to access their pension funds today. The ability to secure a baseline income to cover the household essentials and use the balance of the retirement savings to provide a fund for lifestyle expenditure is now possible. It is still of course essential for individuals to make sure they are underwritten before they look to secure any annuity. Identifying health issues, or lifestyle factors, is not only a good thing to do, but can also result in a significantly higher guaranteed income from an annuity.

“One of the most popular solutions in the LV= portfolio today is the guaranteed income drawdown, commonly referred to as a fixed term annuity, as this offers the individual a guaranteed income for an agreed period of time, with a guaranteed maturity value. It is of course not without risk. Inflation is a very important factor, but predicting inflation for the next 5 years is a lot easier than for the next 25 years.”

Categories: Finance

You Might Also Like

School of Success: 6 Things Business Owners Can Learn from Teachers

Corporate Social Responsibility

05/06/2024School of Success: 6 Things Business Owners Can Learn from Teachers

Business and teaching are too often viewed as opposites or, at best, distant cousins when they actually have to lot in common. The biggest thing many of us don’t realise or have forgotten?

The Best Practices for Safe and Efficient Freight Shipping

05/08/2024The Best Practices for Safe and Efficient Freight Shipping

Freight shipping is a very important part of global trade, helping businesses move goods over long distances. Getting goods ready the right way for freight shipping is necessary to make sure they reach their place safely and without problems. This needs carefu

Best Fund Administrator 2016 – Mauritius

08/06/2016Best Fund Administrator 2016 – Mauritius

CIM Global Business is the leading management company in Mauritius with over USD 150 billion in assets under administration with offices in both Mauritius and Singapore and a representative office in South Africa.

Autumn Statement 2016 – UKCloud Welcomes Digital Infrastructure Investment

23/11/2016Autumn Statement 2016 – UKCloud Welcomes Digital Infrastructure Investment

Today, the Chancellor Philip Hammond has outlined his priorities for taxes and spending in the wake of the UK's vote to leave in the EU in his Autumn Statement. Notably for the technology sector, more than £1bn will be allocated to supporting digital infrastr

Cisco Unveils Plan for Building Internet for the Next Decade of Digital Innovation

16/12/2019Cisco Unveils Plan for Building Internet for the Next Decade of Digital Innovation

Cisco has unveiled the details behind its technology strategy for building a new internet- one designed to push digital innovation beyond the performance, economic and power consumption limitations of current infrastructure.

When to Choose a Virtual Office Over a Physical Office Space

19/10/2023When to Choose a Virtual Office Over a Physical Office Space

In recent years, virtual offices have gained popularity for their ability to offer businesses a prime location business address without a physical office space. For example, today, you can be a business owner in the US with a presence in Tokyo through the use

Enterprise Password Management: A Comprehensive Guide for Businesses

09/10/2023Enterprise Password Management: A Comprehensive Guide for Businesses

Enterprise password management is a crucial aspect of cybersecurity, focusing on securely controlling credentials for privileged accounts, services, systems, and applications. It is also known as privileged password management, and it helps businesses reduce r

Clarion Capital Partners acquisition of stake in Moravia IT

19/03/2015Clarion Capital Partners acquisition of stake in Moravia IT

Moravia IT a.s. (“Moravia”) has announced that Clarion Capital Partners, LLC (“Clarion”), a New Yorkbased middle market private equity firm, has acquired a majority interest in the company. Moravia’s 2014 revenues exceeded USD 100 million, making the

Heart of Gold

16/09/2020Heart of Gold

Gold is always in demand. It’s one of the world’s most sought-after materials, offering a wealth of different opportunities for use. The team at Kirkland Lake Gold are committed to producing the best quality product, alongside with generating superior valu

View More Articles

Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

MORE BRANDS