How are you responding to the recent spike in inflation? Anxious? Thinking about changing your holdings? Or are you more relaxed, believing that this is just a short-term blip which will even itself out…?

Your response, according to new research, may well depend upon your age, your gender, how far you are from retirement and whether you are a risky or conservative investor.

Janus Henderson Investment Trusts, as part of its “Big Five Oh!” awareness campaign, has also found that older investors have made fewer changes to their investment strategy as inflation starts to bite into their returns, or have plans to.

Moreover, the report goes on to conclude that the prospect of living comfortably in the years ahead is the number one objective for savers of all ages, with 56% of investors describing “living the lifestyle I want in retirement” as their primary investment goal.

Key points from the survey include:

Inflation:

• 38% of investors aged 55 and over anticipate that a sustained period of inflation will have a negative impact on their investments
• Younger investors are more concerned, with 42% sharing that opinion
• 30% of “risky” investors are positive about inflation’s impact
• 26% of those that take a “conservative” approach are positive about inflation
• Investors in collectibles and NTFs are the most bullish, with 45% and 44% respectively feeling positively about the impact that a period of inflation will make to their overall investment portfolio.

Investment strategy:

• The prospect of continuing high rates of inflation in the near to medium term has led to 30% of investors making changes to their investment strategy
• Just 24% of those heading towards retirement (aged 55-64) have done so
• 48% of those 55+ have no plans to do so at all
• Younger investors are more enthusiastic about making changes, with 50% having done so, with a further 32% planning to make changes
• Female investors are more likely to have plans to do (29% of men compared with 37% of women)

James de Sausmarez, Director and Head of Investment Trusts, Janus Henderson comments: “The research shows that those nearing retirement age are more concerned about the risks inflation pose, perhaps because they recognise that their planned income streams will need to grow at least in line with inflation if the real value of their retirement income is to be maintained.

“They are the least likely group to have made changes in response to the current environment as their investment portfolios may be positioned for their retirement needs.”

He goes on to conclude with the inevitable caveat: “Investors who are uncertain about what to do should consult a financial adviser or other authorised intermediary.”

Are YOUR plans being blown off course by inflation?

If you want to track how your savings and investment plans are faring, and what impact a sustained spell of inflation might have on them, log into your RetireEasy LifePlan and check.

And, remember: you can run and save, then compare, a range of scenarios using the Classic and Premium versions – including setting different future average rates of inflation as well as checking what would happen if you changed how much you save each month, amended your retirement date or if you are weighing up downsizing your home in the future.