Guaranteed Over 50 Plan

Guaranteed Over 50 Plan - Facts on inflation

Inflation means that prices go up over time. So, when choosing your premium and cash sum, you need to bear in mind that inflation will reduce the buying power of the cash sum over time. For example, the chart below shows the increase in the price of a pint of milk over the last 25 years. So the buying power of a fixed sum, say £1, has reduced over time:

£1 would have bought 4 pints of milk in 1984,
but £1 would only have bought 3 pints of milk in 1989,
and £1 would only buy 2 pints of milk in 2009.

Price of a pint of milk

Source: National Statistics website: www.statistics.gov.uk Crown copyright material is reproduced with the permission of the Controller of HMSO

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