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

PenFed Credit Union Announces Merger with Belvoir Federal Credit Union

31/03/2016PenFed Credit Union Announces Merger with Belvoir Federal Credit Union

PenFed Credit Union, nearly $20 billion in assets, 1.4 million members and headquartered in Alexandria, Virginia, announced that it will merge with the Woodbridge, Virginia headquartered Belvoir Federal Credit Union, which has $320 million in assets and more t

Sawicki Advises Hartenberg’s Purchase of Shares in Good Food

08/07/2015Sawicki Advises Hartenberg’s Purchase of Shares in Good Food

Sawicki Advises Hartenberg's Purchase of Shares in Good Food

How to Prepare for Inflation and Prevent Money Problems

16/05/2022How to Prepare for Inflation and Prevent Money Problems

Many people have heard the term inflation. Is it really harmful to your personal budget? Yes, inflation means the cost of things increases, and it can affect all the things you purchase on a regular basis including groceries, fuel, and expensive items. Inflati

Top Reasons Your Business Isn’t Making Money

15/06/2022Top Reasons Your Business Isn’t Making Money

Has your business become a financial liability instead of an asset? As more than half of all small businesses fail within the first five years, you can imagine that many people have likely found themselves in this situation. They invested a lot of time, money,

Pohjola Asset Management

21/05/2015Pohjola Asset Management

Helsinki-based OP Wealth Management’s R2 Crystal Fund invests in 10-15 different hedge funds across a wide range of strategies. Jussi Kärävä, Head of Fund Selection, told us more about its ongoing success.

The World’s Risk Capital

23/03/2017The World’s Risk Capital

Established in 1971, the Bermuda Stock Exchange (BSX) is now the leading fully electronic offshore securities market. The firm recently won the Most Outstanding Offshore Stock Exchange 2016 as part of the 2016 Global Excellence Awards.

Industrial Businesses: Lowering Costs To Better Your Bottom Line

27/09/2022Industrial Businesses: Lowering Costs To Better Your Bottom Line

Starting up and maintaining your industrial business to be profitable is a challenge. The start up costs are some of the highest for any industry, with the highest costs associated with purchasing and maintaining equipment.

Invoice Financing Provider Expands Asset Based Lending Facilities for UK SMEs

13/04/2016Invoice Financing Provider Expands Asset Based Lending Facilities for UK SMEs

Commercial lending heavyweights including the cofounders of Capital One Bank and Centric Commercial Finance buy invoice finance business with the aim of creating an asset based lending businesses for UK SMEs

How Small Businesses Can Use EDDM to Compete with Larger Brands

06/05/2026How Small Businesses Can Use EDDM to Compete with Larger Brands

Have you ever felt like bigger brands always win because they dominate every ad space? The truth is that small businesses can still beat them when they show up where it counts. EDDM (Every Door Direct Mail) gives you a simple way to place your message directly

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