Fisher Capital Management Warning: Standard Life Issues Inflation Warning

Birmingham, AL (PressExposure) June 23, 2011 --

Joe McGrath, 14 June 2011

Investors buying a level annuity with a pension pot of £80,000 will spend their entire monthly income on basic living costs within seven years of retirement, according to new statistics.

Standard Life researchers have warned that many people could see their retirement income consumed by the basic costs of living as the effect of inflation eats into the money they set aside for retirement.

The FTSE 100 company's retirement team today warned that investors to take financial advice or risk losing out from inflation restricting living standards in the future.

John Lawson, head of pensions policy at Standard Life, said the cost of living is rising fast for most people in the UK, but this can be particularly acute for pensioners.

He explained, 'Their spending habits are driven by commodities such as food and fuel bills and these inflation rates are much higher than the overall UK inflation rate.

'People need to consider how to protect their buying power in retirement from the ravages of inflation over a long period of time, which could be 30 years or more.

'If pensioner inflation remains at around 6 per cent a year, people with a fixed income could lose almost half of their spending power within a ten year period.

'There are many options to consider at retirement which could minimise the impact of inflation on your income, so seeking professional financial advice is vital.'

About Fisher Capital Management Corporate News

At Fisher, we are committed to a long-term investment philosophy that emphasizes quality and diversification. We do business this way because years of experience have convinced us that it's one of the best ways to help you achieve your goals. Our research department uses this philosophy as a guideline when recommending individual stocks. To learn more about the way we research the companies we recommend to our investors, take a look:

About Fisher Capital Management Corporate News

Many investors want to buy a stock if it's a hot IPO, if it's been featured in the news lately or if its price has shot up rapidly in the past few months. Because Fisher does business differently, we view these as warning signs, not buying signs.

Press Release Source:

Press Release Submitted On: June 23, 2011 at 10:38 pm
This article has been viewed 2706 time(s).