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.
Share this..
Related stories
Gordon Brown increases the pressure on Iceland
Gordon Brown yesterday entered the fray with regards to the Icelandic banking compensation bill which has been held up by activists in Iceland. The British Prime Minister has threatened "diplomatic war" with Iceland if the government goes back on a pledge to pay £2.3 billion to the UK government. This puts the Icelandic authorities in a very difficult situation because they have lost support of v...
Read MoreWhen will UK base rates begin to rise?
UK base rates were today frozen at 0.5% by the Bank of England MPC, a move which was fully expected by analysts in the UK. However, many savers in the UK are struggling to survive on their vastly reduced incomes from their savings pots and wondering when the UK base rates will rise and when savings income will return to anywhere near "normal levels". The truth is that the UK economy, while maki...
Read MoreStocks and Shares ISAs outperform Cash
30/04/2014 Research has revealed that investors with a ‘Stocks and Shares ISA’ (Individual Savings Account) have benefitted from much more growth in their savings than those with ‘Cash ISA’ in recent years. According to Moneyfacts, the average growth of a Stocks and Shares ISA in the 2013/14 tax year was 9.42%, with some investments performing even better. For example, the best perfo...
Read MoreDo I really need an emergency fund?
In these times of economic difficulties it can often be easy to live hand to mouth, and indeed many people have no choice but to do this, with many questioning the need for an "emergency fund". Where possible it would be sensible to maintain some kind of emergency funds in the event of unforeseen circumstances which if you're living hand to mouth could literally bankrupt you. However, how do you b...
Read MoreRetirement savings fears revealed by GE Money survey
Only one in four Britons feel that their savings will be sufficient for them to enjoy a comfortable retirement, GE Money has said.A poll from the financial firm also showed that 59 per cent of adults currently have some form of personal pension.However, among 18 to 24-year-olds, this figure went down to just 17 per cent.Moreover, half of this age group told GE Money that they had "never thought" a...
Read More