Research has revealed that 60 per cent of adults are concerned about the effect that inflation will have on their retirement income.

The study from retirement specialist MGM Advantage, shows that the number of people sharing this concern increases to 70 per cent for those aged 45-54, and 78 per cent for those aged between 55 and 64.

Despite these concerns, the research also revealed that more than a quarter of adults have not even begun to think about their pension income in retirement, which is why MGM Advantage believes that if people sought financial advice at this stage, they would have a better understanding of the products that could protect them from inflation.

Commenting, Aston Goodey, sales and marketing director at MGM Advantage said: “While it is encouraging that more people are aware of the impact that inflation will have on their retirement income, it is a particular concern that so many have no intention of seeking professional advice on how best to address this.

“Many people still have unrealistic expectations of the retirement lifestyle they will be able to afford. The reality could be very different, particularly if people take the income offered by their existing pension provider rather than shopping around for the best deal using the open market option.”

As a result, Mr Goodey believes that a growing number of people will need to keep more of their pension assets exposed to the markets: “Another way that people can enhance the level of income they receive in retirement is to select a retirement income product that maintains exposure to the stock markets.

“While it does involve some risk, it also has a better chance of generating upside returns, negating the impact of inflation and maintaining a comfortable lifestyle,” he said.

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