Offsetting the negative effects of inflation

Why more people are retaining exposure to stocks and shares

New research[1] suggests that UK adults are planning to use equity investments to help them outstrip inflation and manage the rising cost of living. Over half (53%) of UK adults rate the rising cost of living as their number one fear for retirement, and almost a third (32%) of pre-retirees[2] say they would retain some exposure to stocks and shares to offset the negative effects of inflation on their retirement income.

The figures show that the rising cost of living is UK adults’ number one fear for retirement, above keeping fit and healthy (45%) or even losing a spouse or partner (32%). When asked about how they planned to offset the declining purchasing power of their pension pots and the negative impact of inflation, almost a third (32%) of non-retired respondents aged 55 and over said they would retain some exposure to stocks and shares.

Source:
[1] MGM Advantage research among 2,028 UK adults aged 18+, conducted online by Research Plus Ltd, fieldwork 17–22 October 2013.
[2] Source: MGM Advantage research among 2,060 UK adults aged 55+, of which 663 were non-retired, conducted online by Research Plus Ltd, fieldwork 4–11 October 2013.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.