Omg 18%

sgx2000

So there are now inflation predictions of 18%....

How the hell can anyone make rational financial descisions for pensions in this current climate?

Stubod

....makes a bit of a joke of the BoE 2% target.....a bit of a fail there then??

..a few years ago I was replying to a thread regarding budgeting for inflation and I got a bit of flak form being too pessimistic when I said I was using a figure of 4% for inflation and 2% for savings interest.....looks like I was being a tad optimistic?

penners324

There are also predictions that inflation has peaked....

sgx2000

Penners   i would love it if  your comment turns out to be right..

But, with the greatest respect,  No chance!

SouthCoastBoy

Agree with sgx, think we are a way to go with inflation  its going to be carnage

QrizB

sgx2000 said:

So there are now inflation predictions of 18%....
How the hell can anyone make rational financial descisions for pensions in this current climate?

In theory, equity returns should be inflation-neutral. In practice, I guess we're about to find out.

sgx2000

I am 62
Was potentially looking at retirement in 2 years....
But god only kmows when now....

Whats next?  The Russians turning all the gas off to europe?

dunstonh

How the hell can anyone make rational financial descisions for pensions in this current climate?

Nothing has changed in your planning.    Financial crises happen on average every 7 years.   Energy crisis happen less frequently in recent times but one would be expected in a typical retirement period.   Inflation and boom/bust would be expected as well.  So, as long as you have a sensible draw rate, you should be fine.   If you are pushing it then expect things to get rough.

In theory, equity returns should be inflation-neutral. In practice, I guess we're about to find out.

Historically, they don't exactly follow the inflation rates but they do tend to once the negative news gets out of the way.

zagfles

Stubod said:

....makes a bit of a joke of the BoE 2% target.....a bit of a fail there then??

..a few years ago I was replying to a thread regarding budgeting for inflation and I got a bit of flak form being too pessimistic when I said I was using a figure of 4% for inflation and 2% for savings interest.....looks like I was being a tad optimistic?

And I remember this thread where several people seemed to be under the illusion that once your pot is big enough you can stop taking risk with your investments:

https://forums.moneysavingexpert.com/discussion/6301953/once-youve-won-the-game/p1

cfw1994

sgx2000 said:

I am 62
Was potentially looking at retirement in 2 years....
But god only kmows when now....

Whats next?  The Russians turning all the gas off to europe?

Very possibly.
Shows what a terrorist state Herr Putin’s Russia has become.
Buckle up, wrap up, and do your best to keep warm…..

molerat

Those of us that are old enough have been here before and still lived to tell the tale.  24.21% in 1975.