The Great Debate UK

Pensioners feel pinch from low rates


rtrt8h- Sharon Bratley is chartered financial planner at Fair Investment. The opinions expressed are her own. -

What does the decision by the Bank of England to keep interest rates at a record low of 0.5 percent mean for the average Briton in retirement?

Well, unfortunately things are not looking good for pensioners at the moment. The official rate of inflation may be on its way down, but in real terms inflation remains high, particularly for pensioners. This time last year, the cost of everything from gas and electricity to a loaf of bread cost less than it does today, and despite falling inflation, prices are slow to come down from their peaks of late last year.

Take energy bills for example – there are millions of pensioners living in fuel poverty, yet it is only in the last few weeks – as the summer months approach – that energy companies are finally bringing down their prices – although still at a fraction of the rate that they increased at.