Pension Credit warning: 1 million retirees miss out on boosted income – are you eligible?

Inflation

Pensioners will need to take advantage of this support where they can as inflation continues to be a problem. This week, the Bank of England confirmed inflation, as measured by the CPI, rose to 4.2 percent. This is more than double the Bank of England’s two percent target.

Maike Currie, an investment director at Fidelity International, commented: “For many households life is rapidly getting more expensive with the cost of transport, household services, and hospitality, the biggest contributors to the rise.

“But this is just the beginning, the Bank of England expects prices to keep accelerating until inflation reaches a peak of around five percent next spring, thanks to a toxic combination of supply chain disruption, rising energy prices and too few workers for too many job openings pushing prices higher.

“The big unknown remains: is the spike we’re seeing temporary as demand rebalances post Covid, or are price rises becoming more entrenched and permanent. The winter will be a difficult adjustment period and households will need to hold tight, with the hope that 2022 will bring some relief.”

Ms Currie went on to break down just how difficult this will be for retirees.