Ms Meadows said: “Inflation is the thief in the night in terms of eroding the spending power of our savings – and especially while interest rates are still very low, despite recent rises.
“If your savings are sat in cash, receiving an interest rate of perhaps 1 percent, while inflation is running around seven percent, in real terms means you can buy six percent less with the money than you could last year.
“For short term savings, this is less dangerous, as despite inflation challenges you don’t have the time on your side to swap inflation risk for investment risk.
“For longer-term savings like pensions though, taking some investment risk is essential to make sure you don’t fall foul of inflation risk, which can actually be more damaging to your savings over the long term.
Most personal pension providers will have ‘default’ or more ‘hands off’ investment options to get you started.
These can come in, for example, medium risk multi-asset funds that spread your money around lots of different assets and sectors to provide a good general exposure without too many big ‘bets’ in any direction.
Ms Meadows continued: “Unless you take an active interest in investment, pick one of those to get you started – at a risk level that feels right for you – rather than sitting your money in a cash fund or account.
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