Connect with us

Business

Why inflation dropping to 6.7% spells ‘good news’ for pension savers | Personal Finance | Finance

CHANNEL TODAY BROADCASTING CORPORATION

Published

2 years ago

on


The latest  figures spell “good news” for savers as the erosion of money’s purchasing power diminishes – the figures also have implications for the .

According to the Office of National Statistics (ONS), the Consumer Price Index (CPI) inflation rate rose by 6.7 percent in August, down slightly from 6.8 percent in July, according to the ONS.

A marginal drop in food and accommodation prices was reported as the main contributor to the decline, according to the ONS.

For state pensioners, PensionBee said it looks like a “dead cert” that the payment rate is set to rise in line with earnings rather than inflation next April.

This reflects the policy rules of the , which dictates how much the state pension increases each year out of whichever is the highest of earnings, inflation or 2.5 percent.

Wage growth increased by 8.5 percent in the year to July 2023, making this the largest figure of the three metrics. However, Becky O’Connor, director of public affairs at PensionBee noted: “That’s unless the Government chooses to break or manipulate the lock to make the rise more manageable to the public purse.”

Wage growth has always been calculated to include bonuses but following this year’s spate of unexpected and large increases in one-off payments to help with living costs, the Treasury could be considering stripping out bonuses in this year’s metric.

This means the state pension would only rise by 7.9 percent next April instead. The decision will be announced by the Chancellor during the Autumn Statement in November. 

For wider pension savers, Ms O’Connor said lower inflation is “good news” for those trying to grow and preserve the value of their pension pots. Although, she noted that 6.7 percent is still relatively high by historic standards.

She said: “Higher prices have been quickly eroding the value of people’s life savings and making it harder to retire for many, as what they had built up is less likely to be enough to last through retirement. Greater price stability will be particularly welcomed by those planning retirement, who may feel more secure about their future retirement income, in a more stable economic environment.”

Successive increases in the Bank of England’s Base Rate, implemented to combat inflation, have driven interest rates on accounts to their highest averages in decades.

But the rising Base Rate has benefited savers, its effect on  rates, which have surged over the past year, has reduced the amount that Britons can set aside.

Ms O’Connor said: “It’s good news that price inflation is heading down, especially when a slight rise was expected, but this is unlikely to be enough to stave off another rate rise from the Bank of England. Slightly lower inflation is unlikely to make people feel more comfortable with their household budgets, as we head into autumn and the season of higher .”

Ms O’Connor pointed out that those facing higher mortgage rates or rent bills, or who have not received an increase in their wages in line with the average of 7.8 percent in the year to July, may feel “less able to cope” with still relatively high ongoing inflation.

She said: “Having the ability to save or invest regularly may come down to whether someone is paying rent or a mortgage or has experienced a pay rise. For many, saving for the future remains on the back burner, while meeting short-term living costs remains challenging.”

Anyone who is fortunate enough to have money spare at the end of the month to save could benefit from higher interest rates from savings accounts, or make the most of their ability to put more money aside for the future in pensions and ISAs.

Ms O’Connor said: “Tax relief on pension contributions remains a great, unique ballast against the impact of inflation on a pension pot. Seek out the best savings rates if you are looking for a short-term home for extra cash. Consider making the most of any spare cash from a pay rise by putting that additional money in your pension.”

PensionBee has an inflation calculator which enables people to see the impact of inflation on their pension savings.



Source link

Related Topics:
Continue Reading

Business

IRGC Vows To ‘Kill’ Netanyahu, Trump Seeks Help To Reopen Strait Of Hormuz While Not Being Keen On Ceasefire

CHANNEL TODAY BROADCASTING CORPORATION

Published

4 hours ago

on

March 15, 2026

By


Iran War News Live Updates: Trump Attempt To Open Strait of Hormuz

US President Donald Trump called on allied countries to deploy warships to protect shipping in the Strait of Hormuz, and there were no indications on Sunday that the ongoing war would end soon.

“The Countries of the World that ​receive Oil through the Hormuz Strait must take care of that passage, and we will help — ⁠A LOT!” Trump wrote in a social media post on Saturday. “The U.S. will also coordinate with those Countries so that ​everything goes quickly, smoothly, and well.”

The president said military facilities on the Persian Gulf island had been “obliterated,” adding that he chose not to hit oil infrastructure “for reasons of decency.” He threatened to do just that should Iran “do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz.”

img



Source link

Continue Reading

Business

upGrad Signs Term Sheet To Acquire Unacademy In 100% Share-Swap Deal

CHANNEL TODAY BROADCASTING CORPORATION

Published

10 hours ago

on

March 15, 2026

By



upGrad has signed a term sheet to acquire Unacademy in a 100% share swap deal.

“Neither side will disclose the valuation until closing, when the papers are filed and the transaction becomes public,” Unacademy founder Gaurav Munjal tweeted on Sunday.

“I will be staying back as Co-Founder and CEO Unacademy – with the Goal to build Great Online Products for Learners in India and Globally,” Munjal added.

upGrad co-founder Ronnie Screwvala said his firm also agreed to a break fee if the deal is not closed. “If this closes. upGrad’s integrated model with an expanded focus from K12 to forever learning will be on a strong trajectory,”  Screwvala added.

“We at upGrad have signed a term sheet to acquire Unacademy in an all-stock deal, with Founder and CEO @gauravmunjal staying on to build Unacademy and focus on what it does best, creating online education products that learners love,” he added.

In January, UpGrad had called off a deal to acquire Unacademy at a valuation of around $290 million, citing valuation concerns and various business-related challenges within the Temasek and SoftBank-backed startup, according to sources.

Sources said that UpGrad changed its mind after realising the business of Unacademy is shrinking and there is fierce competition around the offline centre business of the edtech firm, which will require massive investments.

Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.






Source link

Continue Reading

Business

Light Rains Bring Relief To City On Sunday Morning, AQI ‘Moderate’

CHANNEL TODAY BROADCASTING CORPORATION

Published

17 hours ago

on

March 15, 2026

By



Many areas of the city witnessed light rainfall on Sunday morning, bringing a much-needed respite from the prevailing dry conditions, the IMD said.

The India Meteorological Department (IMD) stated that 5 mm of rainfall was recorded till 8.30 am.

According to the IMD data, Safdarjung and Lodhi Road recorded 0.8 mm rainfall each, while Palam received 0.4 mm. Ayanagar recorded 2.6 mm rainfall and Pitampura 3.5 mm, the highest among the stations.

ALSO READ: Mumbai Mayor Ritu Tawde Responds To Deepika Padukone’s ‘Children Are Choking’ AQI Post

Additionally, Mayur Vihar recorded 1.0 mm rainfall and Janakpuri 0.5 mm, while Ridge reported only a trace of rainfall.

The minimum temperature was recorded at 20.2 degrees Celsius, which is 5.1 notches above the seasonal average, while the maximum temperature is expected to settle around 28 degrees Celsius, the weather office said.

The AQI stood in the ‘moderate’ category at 9 am, with an Air Quality Index (AQI) reading of 190, Central Pollution Control Board (CPCB) data showed.

According to the CPCB, an AQI between zero and 50 is considered ‘good’, 51 to 100 ‘satisfactory’, 101 to 200 ‘moderate’, 201 to 300 ‘poor’, 301 to 400 ‘very poor’, and 401 to 500 ‘severe’.

ALSO READ: Delhi Gasps For Air: AQI Over 200 On Nearly Every Other Day, Winter Peaks Hit 466

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.




Source link

Continue Reading

Trending