31/03/2023
The ongoing effects of inflation are threaded through regular updates on consumer prices index (CPI) figures and energy costs. But headline figures don’t reflect the variation of impact. If you work from home, are retired or are at home with a young family you may be feeling gloomier than most as you don’t get to leave your home for a lit, heated, bills-free working environment each day.
The highest reported CPI figure of 10.5% doesn’t come close to the 65% and 129% rises in electricity and gas prices respectively. Those with lower incomes will be feeling these rises even more keenly as the proportion of their incomes spent on energy is considerably more. And if you are near to retirement you may be alarmed by a recent report from the Pensions and Lifetime Savings Association.
They have found the cost of retirement has gone up 19% for a couple since 2021, almost double the CPI-matching 10.1% increase to State pensions due in 2023/24. The Chancellor’s announcement that the lifetime allowance has been effectively scrapped is helpful news for senior experienced professionals who should no longer be concerned about excessive tax bills on pension funds. The government hopes they may be persuaded to stay in work longer.
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