The soaring cost of living is damaging retirement pots and is particularly detrimental for pensioners on fixed incomes. In May, the UK Consumer Price Index (CPI) rose to 9.1 per cent, placing pressure on retirement incomes that are failing to keep up with rising prices.
Inflation is predicted to reach 11 per cent in the autumn, further reducing spending power, while global stock markets have fallen in 2022, making it particularly challenging to manage pension withdrawals while giving markets enough time to recover.
However, whether your retirement income will last for the rest of your life and manage to combat inflation depends on a wide range of factors, including the size of your pot, and what you choose to do with your retirement savings.