Protecting Wealth from Inflation

Published: February 10, 2025 | By Remy Investments

Inflation remains a persistent challenge for UK investors in 2025, eroding purchasing power and threatening wealth preservation. Established since 1959, Remy Investments offers over 66 years of expertise in helping you safeguard your portfolio from inflation’s impact. Here are five proven approaches to secure your financial future in 2025.

1. Invest in Inflation-Linked Bonds

UK Index-Linked Gilts, which adjust principal and interest payments based on the Retail Prices Index (RPI), are a cornerstone for inflation protection. In 2025, with government borrowing supporting green infrastructure, new gilt issuances offer attractive yields. These bonds provide a hedge against rising prices, ensuring your returns keep pace with inflation.

Investor Tip: Allocate a portion of your portfolio to Index-Linked Gilts for stability. Our advisors can help select bonds with optimal maturities.

2. Diversify with Real Assets

Real assets like property and commodities historically outperform during inflationary periods. UK real estate, particularly in high-demand areas like London and Manchester, remains resilient, with rental yields often exceeding inflation. Commodities such as gold and silver, while volatile, serve as a store of value when fiat currencies weaken.

Investor Tip: Consider Real Estate Investment Trusts (REITs) or commodity ETFs for accessible exposure. We can tailor a real asset strategy to your risk profile.

3. Focus on Equities with Pricing Power

Companies with strong pricing power—those able to pass cost increases to consumers—thrive in inflationary environments. In 2025, UK sectors like consumer staples, utilities, and healthcare are well-positioned, with firms like Unilever and National Grid maintaining stable dividends. Dividend-paying stocks can also provide income to offset inflation’s bite.

Investor Tip: Invest in diversified equity funds with exposure to inflation-resilient sectors. Contact us to build a robust equity portfolio.

4. Explore Alternative Investments

Alternative assets, such as private equity, infrastructure, and sustainable investments, offer inflation-resistant returns. UK infrastructure projects, including renewable energy and transport, are set to benefit from government spending in 2025. These assets often have long-term contracts with inflation-linked revenues, providing stability.

Investor Tip: Incorporate alternatives through managed funds for diversification. Our team can guide you to high-potential opportunities.

5. Rebalance and Diversify Your Portfolio

A well-diversified portfolio mitigates inflation risk by spreading exposure across asset classes. In 2025, combining fixed-income (e.g., gilts), equities, real assets, and alternatives creates a balanced approach. Regular rebalancing ensures your portfolio adapts to inflation trends and market shifts, preserving long-term value.

Investor Tip: Review your portfolio quarterly with a professional advisor to stay ahead of inflation. Remy Investments offers personalized rebalancing services.

Navigating Inflation Challenges

Inflation in 2025 brings challenges, including potential interest rate hikes (Bank of England base rate at ~4%) and geopolitical uncertainties impacting energy prices. Fixed-income investments like standard bonds may underperform, and cash holdings lose value rapidly. However, with 57% of UK investors prioritizing wealth preservation (per recent surveys), strategic planning can turn challenges into opportunities.

Why Partner with Remy Investments?

Established since 1959, Remy Investments offers over 66 years of expertise in crafting tailored strategies to protect your wealth from inflation’s erosive effects. From inflation-linked bonds to diversified portfolios, our expert advisors help you navigate 2025’s economic landscape with confidence.