“In this world, nothing can be said to be certain, except death and taxes,” USA founding father Benjamin Franklin famously said. There’s another certainty he may have missed though – that the cost of living will continue to rise.
Okay, deflation has been an occasional occurrence in UK economic history, but it’s safe to say that when it comes to the cost of living, it usually goes up – and this is what you need to consider when reviewing your pension, insurance policies and other financial products.
With Brexit looming, some experts have predicted price increases – and that our departure from the EU could raise the cost of living by 1-2%. That’s the near future, but what about 10, 20 or 30 years from now? It’s wise to budget for your expenditure during retirement and prudent to add a percentage of that to the total to allow for the rising cost of living.
If you rent your home or will still be paying a mortgage during retirement, you need to think about rises in interest rates or rental prices. Consider this: according to HomeLet’s rental index, UK rents increased by 3.5% in just one year from December 2018 to December 2019 – and by an average of 13.9% over five years from 2014 to 2019.
The 2019 Crystal Customer Survey found that one concern among those already retired is stretching their pension to accommodate living expenses – and this could easily be a future reality for others without shrewd planning now.
It makes sense to regularly review your financial products and make adjustments based on changing personal circumstances and economic conditions. Getting married, having children, getting divorced; these events could mean you need to make changes to your life insurance, will and pensions.
That’s where Crystal comes in. We’re trusted financial professionals with products, policies and information that can help you choose, consolidate or change pension plans, savings and life insurance.
We believe it’s never okay to get bad advice. Our guidance is clear, straight-forward and expert. Get in touch for a free, no-obligation consultation – and see how we can help you organise your finances for a better, sweeter future. To speak to a specialist today call us on 01270 446600.