Inflation hike may undercut returns and contributions

The Bank of England has raised the interest rate to 0.5%

clock • 2 min read
Hargreaves Lansdown senior pensions and retirement analyst Helen Morrissey
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Hargreaves Lansdown senior pensions and retirement analyst Helen Morrissey

The Bank of England’s (BoE) decision to again raise interest rates could act as a squeeze on pension contributions, industry experts have said, while longer-term interest movements may prove pivotal for defined benefit (DB) schemes.

The hike yesterday (3 February) to 0.5% from 0.25% comes on the back of rising gas and electricity prices. Hargreaves Lansdown senior pensions and retirement analyst Helen Morrissey said that mo...

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