Ipswich Financial Adviser

What is inflation? – Inflation takes away the spending power of your money overtime; as inflation and so prices increase the pound in your pocket is worth less each year, a sobering thought.

As an example, if inflation is only 3% p/a, £100 pounds invested today would only be worth, in really terms, £53.75 at the end of a 20 year term.   That is the negative effect of inflation and why it is so important to take it into account when you are looking at your long term savings and investments.

Many illustrations you get from investment or pension companies often do not take inflation into account, the figures that you get  may look large in today’s prices, but in 20 or 30 years time, this perceived value will be much, much less. That is why it is important to get professional help when organising your long term savings and pensions to ensure all the factors have been taken into account and that you stand the best chance of beating inflation.

If you are looking to save regularly within a pension or investment, please speak to Thompson Financial Consulting and we will be happy to help advise you as to the best way to go about investing your money to help beat the effects of inflation.

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