Rising concerns about impact of inflation

The majority of people are concerned about their finances as inflation - as measured by the Consumer Prices Index - reaches a decade high of 5.1%, research suggests.

In a survey carried out by Opinium on behalf of Aegon UK, 64% of individuals told surveyors they were concerned about the impact of inflation on their finances.

Almost a quarter of respondents (24%) reported they were "very concerned" about inflation challenges, while 70% of those aged 43-56 feared for their financial future.

Rising home energy prices topped the list of worries, especially among those aged over 76, 80% of whom cited it as a top concern - unsurprisingly as many in this age group are on fixed incomes and spend more on heating.

A high number of people also expressed worries about planning for the future, with 37% saying they were anxious about their ability to save.

Steven Cameron, pensions director at Aegon, said:

"Our research shows that a high proportion are concerned about the immediate impact of inflation levels not seen for a decade on the affordability of everyday living, from hikes in gas and electricity costs to the price of essential items such as clothes and food.

"Those on a fixed income face a tricky time ahead, and these include pensioners who will be significantly impacted with a sizable gap between the current 5.1% inflation level and the much lower 3.2% used to calculate next year's state pension increase."

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