It’s shocking news that, “The value of UK savings has been eroded by £50bn in the past year because of inflation and low interest rates”, say the Save Our Savers a campaign group. It is particularly galling if you have worked, saved, paid your taxes, worked, saved and paid your taxes to find that you are bailing out those who didn’t.
Save Our Savers wrote to each member of the Bank of England's rate-setting committee urging them to raise the Bank rate recently to help pensioners and encourage saving. But the Monetary Policy Committee kept the rate on hold at 0.5%, allowing borrowers to continue to benefit from rates remaining at the record low.
In a plea to all nine members of the MPC ahead of the recent decision, Save Our Savers said that "a country without savings is a country without a future", the holding of interest rates at a record low could have a permanent impact. It warned that those on fixed incomes, such as pensioners, were suffering terribly from the combination of extremely low interest rates and above target inflation. "For many this is not a temporary setback. Its effect will permanently reduce the value of their future income," the letter said.
If you are one of the savers who are being hit hard by the record low interest rates IFA’s like Bishop Stortford’s Enable Independent might be able to help you rethink your investments and balance the books in these turbulent times.
No comments:
Post a Comment