Is your pension going to pay the bills?

The effects of high fuel prices, food shortages and other domestic commitments such as mortgages and rents, utility costs and home insurance premium rises are all conspiring to take inflation above any salary increases.

This, now, affects the potential of pension savings to keep pace with future needs.

Andrew Tully, senior pensions policy manager at Standard Life, said: "The cost of living is rising fast for most people in the UK, but this is particularly acute for pensioners.

"Their spending habits are driven by commodities such as food and fuel bills and these inflation rates are much higher than the overall UK inflation rate. Pensioners relying on a fixed income will be feeling the pinch, with no sign of an immediate end to their misery. If pensioner inflation remains at around six per cent per year, people with a fixed income could lose as much as half of their spending power over as little as ten years."

For young people who haven't considered contributing towards a pension yet, starting to save a small amount each month might help budgeting for the future a little easier.

June 23^rd 2008

• Cosy up to the government
• A pension worth less than minimum wage?
• Mortgage worries and house price falls - enough to turn you to drink
• You're (hoping to be) fired
• Scared of the switch
• Debt can exacerbate depression
• Keeping hold of the receipts
• Know-it-all teens may not be as "clued-in" as they think
• Pay for 25 years - and it is still not your house
• Still a home owner - with a little help
• The style to which I am already accustomed
• I'm going to work - I may be sometime
• Please Sir, can I have some more?
• How inflation is deflating savings
• More women contributing to pensions
• Spouses will talk about, not listen to, financial advice