If you're reading this the chances are that you are old enough to remember the 70's and 80's and when a certain Margaret Thatcher became Prime Minister and inflation was rampant. In 1979 inflation was running at an incredible (by today's standards) 27%. By 1981 Mrs T had started cutting costs and raising taxes. Sound familiar? It lead to strikes and riots.
So today we should be really grateful that our inflation rate is only around 3.5%. Still a bit over the Bank of England's target rate, but not too bad. Or is it? Are we becoming a little complacent? Those of us reliant on modest incomes should spare a thought for the future. Even at 3.5% inflation, your savings will be worth close on 20% less in real terms within 5 years. And it doesn't look as though interest rates are going to increase any time soon to compensate for the erosion in the value of your cash.
We might need to consider ways of making a few extra pounds to see us through to a half-reasonable retirement.
As they say in the North; "Think on".
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