Pension and inflation?? Worried!

redbuzzard

mania112 wrote: »

I don't look too much into inflation-adjusted values.

Projections to maturity are guesses already, to add in a guess for inflation too just dilutes the calculation too much.

I would say 4% is too high. This year it was 3.2% and that's on this high side already.

Not really...given the economic situation, rampant QE, and Osborne stoking house prices for good measure.

The rolling 15 year average annual RPI increase was in double figures from 1979-1988.

Actually a younger saver doesn't need to know what it will be - nor can they - what they need to do is make sure their contributions at least keep up as they go along.

SG27

Thanks for all the replies. I checked the paper work this morning and the projection was for a retirement age of 55 so could have another 10 years contributions on top. It is not inflation adjusted. Ill have to try and increase my contributions as I go!

Jack_Griffin

Worth looking at historical inflation rates..

http://safalra.com/other/historical-uk-inflation-price-conversion/

Past is no guarantee of future, but you can get a feel of what to expect here..

mania112

CLAPTON wrote: »

Strange way of thinking; whatever is the use of knowing the number of pound notes but not knowing what they buy.

It was the basis of all the shocking mis-selling of endowments and pensions in the 80s and 90s; fantastic projection of cash but totally ignoring that they would buy damn all as it all depended upon high inflation.

"Please note that due to the effects of inflation, the buying power of your fund will be different from what it is today" - that's all that should be said on the matter.

The reason I think that is simply because there's too much speculation involved.