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
Image:

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

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Industry

Western Pension Solutions becomes part of Collective Pensions

Western Pension Solutions becomes part of Collective Pensions

Collective Pensions is a joint venture between Vestey Holdings and Timpson Group

Jonathan Stapleton
clock 11 September 2026 • 1 min read
Good News Corner: Icelandic edition of Rob Gardner's 'Save Your Acorns' launches

Good News Corner: Icelandic edition of Rob Gardner's 'Save Your Acorns' launches

Iceland continues to boost pensions literacy despite OECD-leading contribution rates

Jonathan Stapleton
clock 11 September 2026 • 2 min read
UK economy registers 'surprise' expansion in July

UK economy registers 'surprise' expansion in July

GDP growth swings up to 0.4% amid record heatwave and AI spend

clock 11 September 2026 • 3 min read
Trustpilot