Author Topic: Inflation is decreasing the real value of your savings  (Read 3182 times)

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Philofacts

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Inflation is decreasing the real value of your savings
« on: August 22, 2011, 08:09:09 am »
Inflation is Political Theft of Savings
Inflation is eroding savings at an alarming rate.  Despite tax-free interest, the figures below show that £1000 invested in a Cash ISA paying 3.05%
would only be worth around 75% of its value today in ten years time.

The real purchasing power of £1000 savings after:
Year  1  £980
Year  2  £960
Year  3  £940
Year  5  £898
Year  7  £854
Year 10 £785

Of course, inflation will reduce the value of government debt by the same corresponding amount.
The Bank of England's 2% 'target' rate of inflation is not only a maximum it is also a minimum!

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The Prophet

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Re: Inflation is decreasing the real value of your savings
« Reply #1 on: September 02, 2011, 11:21:09 am »
It is a sad FACT but the Bank of England monetary committee is doing nothing at all about reducing inflation.
It makes you question whether it really is independent, especially after all these months on being above the "target 2%"

Those with savings will suffer, those with a mortgage wont necessarily benefit either as they are not getting any real increases in wages or in the value of their home.


BobTB

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Re: Inflation is decreasing the real value of your savings
« Reply #2 on: September 08, 2011, 02:43:10 pm »
And worse of all real wages are not going up as fast as everything esle we need is like fuel, energy and food.
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