What will 'Trumpflation' do for you?

Ralph Stewart, managing director of Lifetime Retirement Income, which provides an annuity product to help retirees manage their income, said the world could soon look quite different for some investors.
“According to Investopedia, an online financial dictionary, ‘Trumpflation’ is the ‘inflation that may appear during Donald Trump's presidential administration’,” he said.

“Such speculative comment might seem a little premature but economists do like to be forward-looking. And if inflation – whether Trumped up or not - appears after years of price stability that has bordered on deflation, the world will be a very different place.”

He pointed to predictions that inflation is tipped to increase in New Zealand over 2017, with interest rates following suit.

“For retirees, this is the classic ‘good news, bad news’ conundrum. Rising interest rates mean higher returns on savings but higher inflation eats into retirement savings faster.