What is inflation?

And why does inflation matter?

It means the cost of living is going up. If the cost of living is going up but the value of your assets and your salary (if you’re still working) do not go up by at least the same amount, then you’re likely to be worse off, in real terms. Susan Rai-Hutchins shares tips on how inflation affects us, and what we can do to mitigate its effects.While investing your capital is at risk.

A pension is a long term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.