High price inflation and pension schemes

Annual CPI Inflation rose to 9.0% in April 2022 – its highest rate in the last 40 years.

The Bank of England predicts no immediate respite is in sight, forecasting that inflation could exceed 10% within the next few months. It could then be at least a further two years before inflation reduces back towards its 2% target.

Most of the recent high profile media coverage of the “cost of living” crisis resulting from high short-term inflation has been focussed on the impact on businesses and individuals. However, for many of those involved in running defined benefit pension schemes this will also be the first time in a generation they have had to consider the implications of high inflation on their
overall strategy, member engagement and day-to-day operations.

Read our latest paper below to find out Isio’s view on what this could mean for pension scheme risk management and the members of your scheme.