Worldwide Financial Planning

In years gone by, as you neared retirement you had only one option which was to prepare yourself to buy an annuity. In this series of columns, here, Peter McGahan looks into what options you have in front of you today as you think about retirement.

In the UK surprisingly robust growth figures caught out most people, with the data not reflecting either the market consensus or general mood of the country. It is baffling that a large increase in interest rates, a huge squeeze on the consumer as bills eat into disposable income and high energy and input prices aren’t having the effect expected.

Staggeringly, only 72 per cent of the population are on track for at least the minimum standard of living. Read that again. Twenty per cent will hit moderate, and eight per cent will be comfortable.

The Bank of England has increased interest rates to the highest level in 15 years as it confirmed a 0.25% hike. The UK has continued to close the gap on the US as the Bank of England chose to increase at the 14th consecutive interest rate meeting to
take the bank’s base rate to 5.25%.

"Retirement should be a glorious thing, a time to fulfil all that you couldn’t before because of time, and I’ll do my utmost to ensure I cover the money side so you can." Peter McGahan.

Financial markets received a boost as UK inflation fell faster than expected. The Consumer Prices Index slowed from 8.7% to 7.9%, the biggest improvement in two years, as petrol and diesel prices fell.