Retirement Planning Without Fear
- Varsha Havewala
- Sep 4
- 4 min read
How to prevent inflation from eroding your future retirement planning income.
Plan like a Pro with Nifty Money.
Retirement isn’t a finish line, it’s a 25 - 30 year journey. Over that period, even “moderate” inflation (around 3 to 4%) can quietly halve your spending power in 20 years. The good news: with the right combination of investments, tax planning, and withdrawal discipline, you can maintain your lifestyle.
Here’s the current outlook and how Nifty Money helps you stay comfortably ahead of rising prices with smarter, inflation-ready retirement planning.
The quick reality check (latest UK data)
Inflation today is a hidden threat: UK CPI inflation was 3.8% in July 2025 (CPIH 4.2%). Office for National Statistics
Near-term outlook: The Bank of England expects CPI to peak around 4.0% in September 2025, then ease toward ~2% by 2027—but warns risks are skewed slightly higher than in May. Bank of England
State Pension (from April 2025): The New full State Pension is £230.25/week (£11,973/year), which is not enough to beat lifestyle costs owing to inflation. thepeoplespension.co.uk
What a “minimum” lifestyle costs: The PLSA’s 2025 update shows minimum costs down a touch for couples (two-person household £21,600/year) as energy prices eased, while moderate/comfortable baskets rose modestly. retirementlivingstandards.org.uk
Annuity income snapshot: Best market rates for a healthy 65-year-old are around 7.5 –7.9% (≈ £7,545 – £7,906 a year from a £100k pot, single-life), as of 1 Sept 2025. Retirement Line
Why this matters?
Inflation attacks pensions in three ways:
Everyday costs climb while many retirees keep cash-heavy reserves that lose real value.
Poor early-market returns combined with withdrawals can permanently dent the retirement pot.
“Tax drag” can rise as the State Pension grows under the triple lock while tax thresholds stay frozen, pushing more retirees into tax each year. MoneyWeek
The Nifty Money game plan:
1.) Grow your money faster than prices rise: We build investment plans that have a good mix of shares (for growth) and safer options like government bonds that rise with inflation. This helps your savings keep their value even when prices go up.
2.) Make your income last: First, we make sure you have a reliable base income — like your State Pension or an annuity. Then, we use your investments as an extra top-up when markets are doing well, so you’re not forced to sell when prices are low.
3.) Use the State Pension as your safety net: The State Pension goes up each year with the “triple lock,” helping you keep up with rising living costs. We plan around this to make sure it always covers your basic needs.
4.) Consider locking in some guaranteed income: With interest rates higher, you can now get more income from annuities. We can use part of your pension pot to buy one if it makes sense for you so you know some bills will always be covered.
5.) Pay less tax, keep more of your money: We help you use ISAs and pensions in the right order to avoid paying more tax than you need to. This is especially important as tax rules keep changing.
6.) Plan for the lifestyle you really want: We check how much you’ll need for a basic, comfortable, or luxury retirement and see whether your savings are on track. If not, we show you how small changes like saving a bit more or working a bit longer can close the gap.
7.) Don’t panic when you see scary headlines: Inflation and markets go up and down, but we keep your plan steady. If prices rise suddenly, we adjust your investments instead of making rushed decisions.
What this looks like with Nifty Money?
Inflation-ready portfolios: Global equity core + linkers/quality bonds, rebalanced automatically.
Retirement income engine: Scenario-tested withdrawal plans that incorporate State Pension timing, annuity options and market conditions.
Tax-smart wrappers: Coordinated use of pensions and ISAs; MPAA/taper/LSA tracking built into your plan. GOV.UK+1Techzone
Living-standard dashboard: A live view showing whether your income beats the target basket (Minimum / Moderate / Comfortable) after inflation. retirementlivingstandards.org.uk.
Inflation is a headwind, not a destiny. With a growth-tilted, inflation-aware portfolio, sensible withdrawal policy, and sharp tax management, your retirement income can grow faster than prices and stay that way.
This article is for general information only and does not constitute personal financial advice. You should speak to our qualified advisers before making any investment or pension decisions.
Pensions are long-term investments. Their value can fall as well as rise, and this may affect the income you receive in retirement. Inflation may also reduce the real value of your savings over time.
Past performance is not a reliable guide to future returns.
The value of investments can go down as well as up, and you may get back less than you invest. Your capital is at risk.
Want to see how your pension can beat inflation?
Let Nifty Money build you a retirement plan that’s simple, flexible, and built to last.
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