To my best understanding inflation reduces the purchasing power of money meaning pension income may not cover rising living costs. Investments must grow faster than inflation to protect the value of retirement savings. This is why many pension funds look for longterm investment opportunities with stable returns
In the uk the State Pension is partly protected by the triple lock system which increases payments based on inflation, wage growth, or 2.5%, whichever is highest. This helps pensioners maintain their standard of living during periods of rising prices. However private pensions may not always offer the same level of protection
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