Surging energy prices push inflation up to highest level since March

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, insists inflation can have a big impact on pensions.

She said: “Inflation is a particular challenge in retirement because income may need to last for decades.

“The state pension and final salary pensions offer some protection through annual increases, but many retirees with defined contribution pensions need to make more active choices.

“We recommend keeping at least one year’s worth of essential expenses in an easy-access account, so income does not have to be drawn from investments during weaker markets.”