If you’re planning something meaningful—whether it’s buying your first home, saving for a dream wedding, or building a nest egg for retirement—you’re probably wondering whether now is a good time to invest. With recent headlines reporting that UK inflation rose to 3.5% in April 2025, the highest in over a year, it’s natural to feel a little unsure about what to do next. In this guide, we’ll break down what’s happening in the economy, what it means for your money, and how you can make informed choices going forward.
Why Inflation Matters to You
Inflation refers to the rate at which prices for goods and services rise over time. When inflation goes up, your money doesn’t stretch as far—your weekly shop, your energy bills, and even your summer holiday can all become more expensive.
The rise to 3.5% in April, up from 2.6% in March, was largely driven by significant increases in water, gas, and electricity bills, and a jump in airfare and service costs (BBC News, 2025). These kinds of price hikes are especially relevant if you’re trying to budget or grow your savings, because they directly affect your cost of living.
What This Means for Your Investment Plans
If you’re trying to grow your money over time, understanding the relationship between inflation and investing is key.
1. Savings Accounts Aren’t Keeping Up
While interest rates on savings accounts have improved slightly, they’re often still lower than inflation. This means that even if your savings grow in nominal terms, you might actually be losing money in terms of what you can buy with it.
2. Bonds Are a Mixed Bag
If you’re holding or considering bonds, keep in mind that they’re sensitive to interest rate changes. The Bank of England has been cautious about cutting rates further given the uptick in inflation (Bank of England, 2025), so bond prices could remain volatile.
3. Stocks Can Offer Protection
Some types of stocks—especially those in sectors like utilities, healthcare, and consumer staples—tend to hold their value better during inflationary periods because people still need these services regardless of the economic climate.
4. Real Assets Can Help
Investments like property or commodities (e.g., gold) have traditionally been seen as “inflation hedges” because their value often rises along with prices. These may be worth considering as part of a balanced portfolio.
What Should You Do Now?
Investing during uncertain times can be intimidating—but that doesn’t mean it’s the wrong time to start. In fact, if you’re planning for long-term goals, staying invested through various economic conditions can often lead to better results than trying to time the market.
Here are some steps to take:
-
Diversify: Don’t put all your eggs in one basket. A mix of investments can protect you if one area under performs.
-
Think Long-Term: Short-term ups and downs are normal. Focus on where you want to be in five, ten, or twenty years.
-
Stay Informed: Keep an eye on interest rates, inflation trends, and central bank policy announcements.
-
Set Clear Goals: Whether it’s a house deposit in three years or a retirement fund in thirty, tailor your strategy to your timeline.
Speak to an Expert Before You Invest
Every person’s situation is different, and what works for one person might not be the right move for another. That’s why it’s important to speak to a qualified investment advisor—someone who can look at your finances, your goals, and your comfort with risk, and help you make a plan that’s right for you.
Get personalised investment advice from True Advice Financial Services
Whether you’re new to investing or ready to take your next step, a good advisor can help you make smart decisions with confidence—even when the economy feels uncertain.
Regulatory Statements
Equity Release
Equity Release plans are not right for everyone. And it is important that you fully consider your options and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.
Remember that taking an equity release plan is generally a long term option. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without penalties.
Investments
All investments involve a degree of risk of some kind. This section describes some of the risks which could be relevant to the services we provide you. We may provide further risk information during the course of our services to you, as appropriate.
Our services relate to certain investments whose prices are dependant on fluctuations in the financial markets outside our control. Investments and the income from them may go down as well as up and you may get back less than the amount you invested. Past performance is not a guide to future performance.
Mortgages
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Buy to Let Mortgages
Some Buy to Let Mortgages are not regulated by the FCA.
True Advice Financial Services is a trading style of TA and SE Hollom Ltd (FCA 461206) which is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority : Number 460421.
Registered Office : New Leaf Distribution Limited, 165 – 167 High Street, Rayleigh, Essex, SS6 7QA.
His qualifications include the LIBF Level 3 Certificate in Regulated Equity Release, IFS Level 4 Diploma for Financial Advisers, and several other certifications. Tony prides himself on delivering professional, efficient, and thorough service, helping clients navigate financial challenges with confidence.
Outside of work, he enjoys traveling and exploring new places with his wife.
- How to Invest in 2025 During Rising Inflation - May 22, 2025
- Confident Financial Planning - April 15, 2025
- Estate Planning Essentials to Protect Your Wealth - October 28, 2024