Pensioners 'need the best savings rates to beat inflation'

New figures have shown that pensioners will require their retirement income to double during a 20-year period in order to beat inflation, highlightingthe importance of obtaining the best savings rates.
 
Figures published by Prudential have shown that a fixed annual retirement income over this time will lose approximately £10,000 in value due to the high rates of inflation affecting this demographic.
 
Vince Smith Hughes, head of business development at the firm, emphasised the difficulties facing those with a fixed rate of income.
 
He highlighted the importance of choosing options that provide the best savings rates and offer a flexible income plan, as this will help to mitigate some of the effects of inflation.
 
Mr Smith Hughes added: "Pensioners on a fixed income are particularly vulnerable when it comes to rising living costs."
 
Phil Perry, director of Ark Financial Planning, recently advised those looking to maximise their savings interest rates to consider deposit accounts as a first resort, as these balance good facilities with little risk exposure.

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2011-09-01 13:00:00 © Moneyextra.com