Are you heading for a ‘Toblerone Retirement’?


Are you heading for a ‘Toblerone Retirement���?New research has shone a light on our changing retirement habits, as we struggle with the twin effects of inflation and ‘skrinkflation’.

Figures from pension provider, Retirement Advantage, show that:

  • The days of the ‘cliff edge’ retirement, where one day we worked, and the next we didn’t, are long gone for many, with 52% of people age over 50 planning to work part-time in retirement
  • That’s an 11% increase over recent years
  • 30% of people are worried about the cost of living in retirement, whilst 72% say paying the bills is their main priority


The research comes in the same week that a sharp rise in the rate of inflation was announced by the Office for National Statistics.

According to the ONS, the Consumer Prices Index (CPI) has now risen to 1.6%, it’s highest level for over two years, and is expected to move higher as we head further in to 2017.

Pensioners, who often rely on fixed incomes and their savings, are particularly vulnerable to the effects of inflation. Many have bought a level Annuity, where the payments are fixed for life and the buying power is eroded by inflation. Whilst pensioners relying on their savings, will also see the value of their capital eroded, as inflation continues to outstrip interest rates.


As prices are rising, the value we get from many goods and services, is being cut.

Take the Toblerone, a much-loved Christmas staple, which was cut in size by 10%, due to the rising costs of raw materials.

Responding to the figures, Andrew Tully, Pensions Technical Director at Retirement Advantage, said: “People are worried about how their finances are being stretched and are clearly concerned about how they will be able to pay the bills. We’ve seen an increase in the number of people who say they will work part-time following retirement due to the pressures on household finances.”

“Inflation manifests itself in two ways. Not only can goods and services cost more, but people will also find the products they do buy won’t go as far due to ‘shrinkflation’. Both can have a significant effect on household budgets, especially when you typically have fixed incomes in retirement.”

“People need a financial plan which not only secures an income to pay the bills throughout retirement, but is flexible enough to cope with inflation. Only then can people start thinking about how other savings can be used to create the retirement they’ve worked so hard for.”

We are here to help

If you are approaching retirement, or have already stopped working, and are concerned about the effects of inflation, we are here to help.

We specialise in putting together financial plans ensure a financially comfortable retirement.

If you would like to chat, call Bev or Sarah on 0115 933 8433.