Inflation remained at 8.7 p.c for the 12 months to May, eating into the value of pensions and other savings.

Britons could also be tempted to scale back their pension contributions as they want the cash now to cowl the rising price of dwelling, however an professional has urged individuals to proceed to put aside cash for his or her pensions.

Becky O’Connor, director of Public Affairs at PensionBee, advised Express.co.uk: “Pensions are designed to beat inflation over the long term and they generally do because of investment growth.

“However, they aren’t immune to the impact of inflation, and if your pension value doesn’t happen to grow at a time when inflation is relatively high, this could decrease your purchasing power, which over time could mean that your pension savings might not get you as far as you’d hoped.”

She mentioned a 60-year-old with a pension pot value £41,000 may see this develop to £42,763 in a 12 months, if that they had 5 p.c funding development and made no extra contributions.

READ MORE: Prices still 'rapidly rising' as inflation remains at 8.7% in more bad news for Britons

But with the rate of inflation currently outpacing this at 8.7 percent, their pot would really be value £39,196 a 12 months from now in actual phrases.

They would want to contribute or get further development value £3,567 over the 12 months for his or her funds to have identical buying energy

However, Ms O’Connor mentioned that though it might look scary to see a pension pot shrink in actual phrases over the course of a 12 months as a result of inflation, it would develop in actual phrases over time.

Another concern for pension savers is the continued rising price of dwelling, with many family payments growing from April.

Ms O’Connor inspired individuals tempted to slash their personal pension contributions to proceed to chip in funds.

She mentioned: “While it can be tempting to stop contributing to your personal or private pension, a sensible alternative may be to consider reducing the percentage of your contribution rather than stopping altogether.

“Even if retirement seems a long way off, the small amounts paid each month now will go a long way in the long term due to compound interest and investment growth.

“Make a note to review and increase your contributions once again when you feel less stretched.”

She additionally mentioned individuals could wish to examine if they'll declare Universal Credit, a profit that helps individuals of working age on low incomes.

People on the profit are additionally receiving a £900 price of dwelling cost this 12 months, which goes out in three instalments.

The first £301 instalment has already been paid with the second £300 cost to exit in autumn 2023 and the third £299 cost to exit in spring 2024.

Another key issue for individuals planning their retirement funds is the state pension. The full fundamental state pension is at the moment £156.20 per week whereas the complete new state pension pays £203.85 per week.

Ms O’Connor mentioned: “Those who are eligible for the full new state pension receive an annual income of around £10,600.

“While this alone is not enough to fund your retirement, when combined with personal and workplace pension savings, the state pension may help you reach the £23,000 per year that the Pensions and Lifetime Savings Association indicate is needed for a ‘moderate’ retirement for an individual.”

An individual who has gaps of their National Insurance report can voluntarily pay contributions, which can enhance their state pension funds.

An particular person can examine how a lot state pension they're on monitor to obtain utilizing the state pension forecast tool on the Government web site.

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