Becky O’Connor, the director of Public Affairs at PensionBee, highlighted why the Bank of England’s decision could assist pensioners and retirement savers going forward.

She explained: “Expectations of further rate rises have dampened – this looks like a point of rest for rates, before possibly falling again sometime next year.

“If that’s the case, the market volatility of the past few months could settle, benefiting pension savers who depend on investment performance to boost their pots.

“For those approaching or in retirement who have found managing their retirement and withdrawal plans stressful because of market ups and downs, this potential change in monetary policy direction might offer some respite.”

The pension expert warned that those relying on savings accounts will need to keep “chasing” higher rates on the market.

Savers have benefited from the Bank of England’s decision to raise interest rates as this has been passed on to the customers of banks and building societies.

However, with the central bank pausing its rate increases, experts are betting on savings accounts being less competitive in the months ahead.

Ms O’Connor added: “For people with retirement money tied up in savings, it will be important to keep chasing decent rates, as high-paying accounts may not hang around for long.

“Meanwhile retirees who are weighing up whether an annuity is the best way for them to take an income might want to consider that annuity rates may not be as attractive as they are now, in a year’s time.”

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