PENSIONERS LOSE OUT - AGAIN!

The combination of rising inflation and low interest rates invariably hits pensioners the hardest.  Because most pensioners have paid off their mortgage they don't benefit from low interest rates.  In fact it's quite the opposite, low interest rates hits savers.  On top of this, the Bank of England have failed in their duty to hold down inflation to the government target of 2%.   In December the Consumer Price Index rose to 3.7% with the Retail Price Index (a more realistic measure for most of us) rising to 4.8%.

And it can only get worse; utility bills are on the increase, petrol is rising inexorably towards £6 per gallon, VAT is now 20% and National Insurance goes up in April.  This all adds to transport costs which lead to higher prices in the shops.

Recent figures suggest that people over 65 are worse off by more than £700 a year - that's nearly £14 a week.  Any trade union worth its salt would be up in arms if its members lost that kind of money.

Sorry to sound depressing, but I tell it as it is (at least in my opinion) and the only glimmer of hope on the horizon is that the Bank of  England are likely to be forced into raising rates earlier than previously expected.  Some economists are suggesting a rise in the first half of this year.  Don't get too excited though, the rise is almost certain to be only 0.25% which isn't going to amount to much in terms of income on savings.

 Maybe we should give more serious thought to finding another source of income.  Another £1,000 a year is barely going to make up for our current losses.

Be well.