What is the ‘real rate of inflation’?

The current projected figures for 2017 see inflation set to grow by between 2.5% and 3%, but there are already reports surfacing that this figure is misleading, with most families set to experience much higher increases than this, thanks to the ‘real rate of inflation’. But what does that actually mean and why is the real rate so different to the projected figure? The official rate of inflation has been calculated by the government using the consumer price index (CPI) since 2003. The CPI is worked out by looking at the prices of set goods and services considered by the Office of National Statistics to be representative of how an average person in the UK spends their money. However, as with a

Should I transfer out of my final salary pension scheme?

Retirement consultancy Mercer recently revealed that the final salary pension deficit of the 350 largest companies listed in the UK had reached £137 billion by the end of last year, despite the FTSE 100 index closing 2016 at a record high. That figure is more than three times the corresponding deficit amount of £39 billion at the end of 2015. “This continues to put real pressure on any risk management plans”, says the UK defined benefit risk leader for Mercer, Alan Baker, “and will require trustees and corporate sponsors to work closely together”. It’s perhaps no surprise then that more and more people are seriously considering cashing in their final salary pensions and transferring the fund

February Market Commentary

Introduction Despite the claims of Brexit and the debate on triggering Article 50, it is impossible to start this commentary anywhere other than in Washington where, on January 20th, Donald Trump was inaugurated as the 45th President of the United States. It is remarkably difficult to find a news outlet that has a neutral view of ‘the Donald:’ however, we’ll do our best in this commentary to stick to the facts and let you form your own opinions… So far the new President is looking to make good on his pledge of “only America first:” he’s pulled out of the Trans-Pacific Partnership and indicated that he’ll be building a wall along the US/Mexico border – but he has graciously accepted Theresa M

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