Re: savings rates versus inflation

On Fri, 29 Jun 2007 17:31:28 +0100, "Andy1973"
<archard@xxxxxxxxxxxxxxxxxxxxxxxxxxx> wrote:

Savings rates with the best providers have for a long time been some 2%
above the annual inflation rate, meaning that savings after tax keep some 1%
ahead of inflation. Is it a safe (ish) bet that this will always hold?

The long run Barclays Capital Equity Gilt survey tracks cash saved in
instant access accounts. Excerpt here -
<URL:http://www.finfacts.ie/Private/curency/equitystudyusukstocks.htm>.
If you want the full 2006 study I'll email it.

The
question assumes importance when considering the choice between an
index-linked pension and a lump sum in lieu.

You're not comparing like with like. In any case a pension is likely
to be a long term investment, cash should only be kept for short term
expenditure. My general ethos is to take as much as you can as soon as
you can and you take control & responsibility for inflation proofing.

If you provide more details and/or browse the group you'll find loads
of previous comment on pension options.

Daytona
.

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