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

AMNT calls for mandatory member representation on scheme boards

AMNT calls for mandatory member representation on scheme boards

Body says members’ voices remain ‘almost silent’ in current DC and CDC arrangements

Martin Richmond
clock 13 August 2026 • 3 min read
Taxable pension withdrawals pass £75bn for under-65s

Taxable pension withdrawals pass £75bn for under-65s

Analysis finds 2.4 million have now taken their first taxable payment below the age of 65

Alex Levy
clock 13 August 2026 • 2 min read
AMNT: Three urgent reforms for the protection of member rights

AMNT: Three urgent reforms for the protection of member rights

John Flynn says the organisation has ‘serious concerns’ the voice of members will be lost

John Flynn
clock 13 August 2026 • 5 min read
Trustpilot