IFA’s Enable of Bishop’s Stortford have noticed that there has been much in the news about British savers. Many campaign groups have been slamming 'blind' politicians over the damaging low interest rates and claim that the UK saving crisis has been laid bare recently by a report showing that German and Chinese workers are putting away a vastly greater chunk of their monthly pay-packet.
The slice of income UK workers put into savings, investments or pensions has fallen to just 7 per cent, according to Bank of England figures. In China it is an enormous 47 per cent and in Germany, Europe's strongest economy, workers siphon off 10 per cent - almost half as much again as UK savers.
The gulf between Britain and China's savings ratios is now at an all-time high and may have immediately called on MPs to 'wake up' to the plight of British savers, who have been battered by record low rates since 2009. Simon Rose, of Save Our Savers, said a higher level of saving in the world's stronger economies is no coincidence. 'Can't our politicians wake up to the fact that most successful countries in the world have a high savings ratio? There is a link and they ignore it at their peril.' He says savers, particularly the elderly who rely on nest eggs for income, have been unfairly exploited since the Bank of England cut rates to a record low 0.5 per cent in 2009 in a bid to prop up struggling borrowers.
Enable can see why savers feel so hard done by so it is important to make every penny work for you our Independent Financial advisors are always happy to talk it through.
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