CPI inflation has risen to 2.1% contradicting earlier predictions that it would fall to 1.9% and is above the Bank of England’s 2% target.

Aegon has issued a warning over what it called the ‘little known’ money purchase annual allowance (MPAA), which stops people who have accessed their pension flexibly from contributing more than £4,000 into their money purchase or defined contribution pension without a tax penalty.

Aegon has called on Boris Johnson and his new Cabinet to “look beyond Brexit” to advance social care policy and address pensions priorities.

The Consumer Prices Index (CPI) 12-month rate was 2% in June 2019, unchanged from May 2019.