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

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...

To continue reading this article...

Join Professional Pensions

  • Unlimited access to real-time news, analysis and opinion from the industry
  • Receive our in-depth monthly magazine in either print or digital format
  • Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
  • Receive important and breaking news stories selected by the Editors in our daily newsletter
  • Hear from industry experts and other forward-thinking leaders
  • Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date

Join now


Already a Professional Pensions member?


More on US


TRS hands $6bn to KKR and Apollo, grows strategic partners programme

US - The Teacher Retirement System of Texas has agreed to issue $6bn combined to Kohlberg Kravis Roberts and Apollo Global Management expanding its strategic partnership programme to the private markets.

clock 08 November 2011 •

US investors returns negative in Q3

US - All US institutional investors performed negatively in the third quarter of 2011 with the median public, corporate and multi-employer funds down 8.94%, 7.94% and 9.03% respectively, Wilshire Trust Universe Comparison Service (Wilshire TUCS) results...

clock 08 November 2011 •

CalSTRS policy calls for political transparency

US - The California State Teachers' Retirement System (CalSTRS) has adopted a policy which puts pressure on company management teams to disclose their political contributions.

clock 07 November 2011 •