Pensions: Inflation hits 30-year high and ‘pensions aren’t immune’ | Personal Finance | Finance

She said: “When inflation is high this can affect investment returns, and the value of your money can be at risk of inflation if not inflation-linked.

“Many pensions average for pension increases of two percent per year; however, the current inflation has more than doubled this, meaning the value you receive if taking a pension will be much less, and you will not be able to buy as much.”

Makala went on: “For those drawing or about to draw a pension, you have the option of opting for or converting your drawdown pension to an annuity (a financial structure that gives you a guaranteed income for the rest of your life) that can link to inflation.

“That way, you have protection against any ups and downs. However, annuities may mean less money and flexibility.”

Follow Makala Green on Instagram at @TheWealthCheck and check out her website www.makalagreen.com.