State pension hits and rising inflation biggest risks to retirement

"This is particularly true for women, many of whom have been unfairly disadvantaged by relatively recent changes to the state pension, and are more reliant on a state pension than men for their retirement income.

Ms Smith noted that although we have been living through a period of low inflation in recent years, following the Brexit vote the value of the pound has fallen dramatically, which is likely to send inflation higher as goods and services become more expensive.

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"Over time this is likely to lead to higher prices as the cost of imports rise. Inflation has long been the enemy of those on fixed income and unless people have taken steps to protect the real value of their money, its effects can be difficult to mitigate."

Scott Gallacher, director at Leicester-based Rowley Turton, said while pensioners have generally got wealthier over recent years, people are right to be concerned about their retirement income, especially those on a fixed income from annuities or relying on deposit interest.

"Cuts to state pensions and rising inflation are constant concerns that people should factor into their financial planning. But with the recent falls pound anticipated to lead to higher inflation, and recent forecasts predicting Brexit could cost the Treasury £66bn a year, it is perhaps a more worrying time for some than normal.

"Naturally we all hope Brexit will deliver long term benefits to the UK but it is important that people take account of the short term risks and position their financial affairs accordingly."