
Inflation-proof your savings
Rising inflation is prompting many of us to think carefully before spending, but it should also be a trigger to make us consider the impact on our savings and investments.
The greatest risk to capital
In times of rising inflation and low interest rates, sticking to cash is a major risk, as the real value of your money will be eroded over time. Even if you are happy to tie up your money for five years, you’re unlikely to match the current inflation rate.
Diversification is key
It’s prudent to keep any emergency funds in cash at the bank, but then to consider inflation-beating assets such as the stock market for longer-term investments. Investment products have historically delivered better returns over the long term, so it’s advisable to consider the options.
Don’t forget the taxman
Taking advantage of tax-efficient investments such as ISAs or pensions is a simple way to protect investment returns and mitigate the effects of inflation.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.