Pensioners to secure ‘positive effects’ of Bank of England interest rate hike to 4.25% | Personal Finance | Finance

Becky O’Connor, director of public affairs at PensionBee, warned it is likely to be a challenge for pensioners and pension savers in a high inflation, high interest rate environment.

She said: “The current macroeconomic situation feels like the worst of all worlds for people trying to make their money grow over time, like workers with pensions, or those trying to preserve its value to make it last through retirement, such as those who have started to take an income from their pensions.

“And as inflation creeps higher, leaving interest rates and also stock market returns lagging, savers and investors, including people paying into their pensions, might begin to wonder whether they will ever get ahead.

“It’s important for pension savers and retirees to focus on controlling what they can control, which includes increasing contributions if you can and making sure your money is invested correctly for your financial goals, whether that’s long term growth or taking an income.”