Should UK savers be asked to bail out the UK economy?
Over the last 24 hours the Bank of England has indirectly issued a number of potentially controversial comments regarding UK savers and the fact that they should be spending their savings rather than looking to the future. This comes during a period that has seen UK savers put under extreme pressure, feel unwanted and ultimately many have had to dip into their savings to get by. At a time when UK base rates have remained at 0.5% more than 18 months is it right that UK savers are now expected to dig deeper to inject more capital into the UK retail market?
It would seem more and more that the UK government and the UK regulators are condoning additional spending at a time when budgets in the UK are being stretched to the limit. Once the recession is over and we see the financial mess it has left behind, how will the UK government react when pensioners and those approaching retirement require more funding because they have had to spend their savings in the short term to survive?
The UK savings market has been decimated over the last two years and those who have saved for their future have been crippled by the credit crunch and the UK recession. The fact they are now being asked to dig deeper and deeper is a reflection of the difficult situation in the UK regarding the economy and its immediate future.
Will UK savers now be tempted to move their assets overseas for better rates?
As savings rates in the UK continue to fall and despite noises from the political arena nothing seems to be changing, there is a suggestion that more and more UK savers could look to the more risky overseas markets for better returns. The weekend press highlighted a £5000 savings account with an unnamed bank which was due to make the owner around five pounds a year, which is a rate of 0.001%!
Retirees to rely more on savings
Retirees are to rely more on savings in the future as pension schemes start to offer smaller payouts, according to one expert.Keith Churchouse, director of Churchouse Financial Planning Limited, believes there will still be a significant number of people who opt out of making payments through the personal accounts system, due to be introduced in 2012.Mr Churchouse says it is hard to foresee whethe...Read More
When will UK savings rates return to former levels?
With UK base rates currently at a 0.5% and the vast majority of savings accounts offering limited interest on deposits, savers in the UK are starting to wonder as and when savings rates will return to former levels. It is easy to forget, in the midst of the current recession, that UK base rates were around 5% less than two years ago and have fallen by 90% in the meantime. Unfortunately, even thoug...Read More
Vodafone announces £1 billion of cost savings
It seems as though the need to cut costs has now spread to the mobile telecoms market with industry giant Vodafone announcing plans for £1 billion in cost savings. The group has suggested a rise in raw material prices and increased competition in the sector is the reason behind this cost-cutting programme and in line with the difficult market conditions revenue forecasts for the group (for the fu...Read More
Brits cut Christmas budgets
Nearly half of all British internet users intend to cut their Christmas shopping budget this year in an attempt to save money, new research has indicated.A study by Twenga, a shopping search engine, interviewed 3,000 internet users across Europe and found that 42 per cent of respondents were to spend less this year than last, with the figure rising to 48 per cent in the UK.More than a fifth (21 pe...Read More