Pensions and Inflation/Interest rates

S

StingyIjebu

Registered User
Messages
2
Hi Guys,

Could someone provide a brief breakdown on how inflation and interest rate decreases/increases can impact pensions? I would appreciate a breakdown from the employer's side, and also the employee's end of things.

Thanks in advance.
 
If it is for a job in the financial sector, then a properly qualified applicant would already know the answer to this.

If it's a different sector, that's a strange question to ask
 
jpd said:
If it is for a job in the financial sector, then a properly qualified applicant would already know the answer to this.

If it's a different sector, that's a strange question to ask
Click to expand...

I work in the financial sector and would not be comfortable giving a comprehensive/definite answer here.

The poster is looking to do some research in advance of an interview. It would of been just as easy for you to have given a brief answer than what you wrote.
 
Official interest rates are used to influence inflation

With high inflation /overheating economy/to much lending then interest rates can be increased to reduce


With low inflation/poor economy/too little lending then interest rates can be lowered to increase

With pensions inflation can erode the value of the savings
 
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