Interest Rate up a measly .25%

nilagin said:
And they will likely be wanting compensation for being mis sold a product that may not deliver.
I started work a little over 39yrs ago and I have never expected any return on savings. If I have had savings that I knew I wouldn't have to touch I have put them into a long-term savings account with a guaranteed return. But certainly never relied upon it. It's just a bonus that you may get. Nothing more.
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Good for you then, but I cannot understand why you won't concede that the reasonable expectation was to receive slightly more than nothing.

Same as women expected to retire at sixty, should they have budgeted for another five years at work because nothing is guaranteed
How about those on final salary pension that were halted, were they wrong to expect it to continue until they retired.

I also started work about forty years ago and if asked then about the future I would have said about 5% return on savings, are you saying you wouldn't have?
 
I am lucky enough to still be on a final salary pension. But that could change at any point in the future before I do retire. So no I am not counting on getting it. Same as I don't count on getting a good return on savings. Just keep saving more and you will get more interest pro rata is all that you can really hope for. There are ways of getting better returns but they also aren't guaranteed and you could end up losing your original investment too. I have always based my finances on what I have got and not what I might have or think I should have. When I took out my mortgage I based it on my base money , no added shift allowance, no overtime even though my employer would have been able to provide a larger figure for my earnings and as a result could have got a much higher mortgage. That paid off because not long after we got the mortgage my wife and I started a family, she had given up work but mortgage interest rates went sky high.
 
Cobra said:
There is that I suppose, but again it depends on how much you want to to put into a house.

Ouch!
Worst I did was a side extension, bedroom, kitchen, garage, new windows, new heating & rads mid '80's did well on that one, I thought.
£16,000 for the extension and about another £4K on "incidentals".
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Yeah, almost the same for me early-mid 80's. Semi-det house was only about £12.5k then & we borrowed about £5k extra to put central heating in, converted/extended kitchen, + a few other jobs.


Apart from a re-wire & re-roof, the one we're in now has had a complete update inc new kitchen, replaced all windows & doors, new bathrooms, roofline, driveway, garage door, glass conservatory roof........


Thing is after 10 yrs I'm gaining around 8% in hard cash when we sell & move next week, whereas the other house was around a 60% profit in 8 yrs. (I'm not complaining BTW, the housing market needed a kick in the nuts)
 
OldCarlos said:
Thing is after 10 yrs I'm gaining around 8% in hard cash when we sell & move next week, whereas the other house was around a 60% profit in 8 yrs. (I'm not complaining BTW, the housing market needed a kick in the nuts)
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"We" bought in '78 just before the first real rise, by 1980 the value had doubled!
But of course its all relative, have we decided to move at the point everything else doubled too!
 
Cobra said:
"We" bought in '78 just before the first real rise, by 1980 the value had doubled!
But of course its all relative, have we decided to move at the point everything else doubled too!
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Yeah, that's the big issue, % rises. Be it property or wages. (the rich get richer syndrome)

I bought my first house in '79 for £7.5k & sold it 2 yrs later for £11k.
 
tijuana taxi said:
Certain types of pensions are dependant on interest rates along with the price of shares and property.
So are you saying bung it in the mattress so you know what you have got?

Lots of pensions available now do not have a guaranteed payout figure, you are generalising using your own circumstances as a constant.
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In what way?

An annuity is fixed for life, the annuity rate you get will depend on the interest rate at the time you retire.

Or are you referring to drawdown? Where you can take money out of your overall pot, which remains invested?

There's more way to invest your money than with bank interest rates though, those of us years away from retirement are having to invest in much higher risk investments in order to try and gain enough growth to be able to have any hope of ever retiring.

With Brexit on the horizon, we should rightly prioritise those in work and the stability of our economy over old people not getting enough interest.

The really funny thing is, they're the same people saying the young shouldn't buy themselves a coffee now and again and save up their money. But at the same time, complaining that they're not getting enough free money by the way of interest. And it's the young that they say have a sense of entitlement.
 
KitsuneAndy said:
But at the same time, complaining that they're not getting enough free money by the way of interest. And it's the young that they say have a sense of entitlement.
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And the amount of money we poured into the pension fund, over the last 40-50 years, only to see that squandered away by successive governments.
Yes we thought we had our arses covered, I hope you have better luck than we did.

KitsuneAndy said:
With Brexit on the horizon,
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Bloody brexit! I got a nasty stone chip in my windscreen the other day :(
 
Cobra said:
And the amount of money we poured into the pension fund, over the last 40-50 years, only to see that squandered away by successive governments.
Yes we thought we had our arses covered, I hope you have better luck than we did.


Bloody brexit! I got a nasty stone chip in my windscreen the other day :(
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We still have to pay into our pensions though, and we don't get any of the tax breaks that have already been removed. Yes, it was a kick in the teeth when they happened. But that doesn't mean we get a better way of saving money.

While Brexit may not be the root of all evil, you can't really say it's not a cause of uncertainty in our economy :P
 
KitsuneAndy said:
But that doesn't mean we get a better way of saving money.
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TBH I guess in what 30 odd years(?) when your generation retires, if you are lucky that is, (its almost like going back to the Victorian age,
work till you drop) , the retirement age is slowly creeping up ...
God knows what it will be then, and all because, as I said, the state pension fund has been slowly depleted, by successive governments "keep people working, and we won't have to pay anything" seems to the plan ..

Its funny, when I was Mid 20's I was strongly advised to take out a private pension as the state pension would be worth F.A.
So even going back *cough* a few years, it was alway on the cards...
And of course the private pensions are not producing anywhere near what they are supposed to be either :(
So as I said above, I hope your generation manges to pull something out the hat, as this has been going on for a lot of years though I doubt it ...



KitsuneAndy said:
While Brexit may not be the root of all evil,
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Sorry, reading back through all the posts recently, I thought it was ... :p
 
KitsuneAndy said:
In what way?

An annuity is fixed for life, the annuity rate you get will depend on the interest rate at the time you retire.

Or are you referring to drawdown? Where you can take money out of your overall pot, which remains invested?

There's more way to invest your money than with bank interest rates though, those of us years away from retirement are having to invest in much higher risk investments in order to try and gain enough growth to be able to have any hope of ever retiring.

With Brexit on the horizon, we should rightly prioritise those in work and the stability of our economy over old people not getting enough interest

The really funny thing is, they're the same people saying the young shouldn't buy themselves a coffee now and again and save up their money. But at the same time, complaining that they're not getting enough free money by the way of interest. And it's the young that they say have a sense of entitlement.
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You seem very embittered, do you think only old people save, retired people do actually put money back into the economy and often pay a s*** load of tax too.
 
Cobra said:
TBH I guess in what 30 odd years(?) when your generation retires, if you are lucky that is, (its almost like going back to the Victorian age,
work till you drop) , the retirement age is slowly creeping up ...
God knows what it will be then, and all because, as I said, the state pension fund has been slowly depleted, by successive governments "keep people working, and we won't have to pay anything" seems to the plan ..

Its funny, when I was Mid 20's I was strongly advised to take out a private pension as the state pension would be worth F.A.
So even going back *cough* a few years, it was alway on the cards...
And of course the private pensions are not producing anywhere near what they are supposed to be either :(
So as I said above, I hope your generation manges to pull something out the hat, as this has been going on for a lot of years though I doubt it ...




Sorry, reading back through all the posts recently, I thought it was ... :p
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Yeah I'm putting 10% of my salary into my pension at the moment and invested in some very high risk funds (which so far, has worked out for me, 40% growth in the past 12 months). But god knows what age I'll be when I actually get to retire!
 
tijuana taxi said:
You seem very embittered, do you think only old people save, retired people do actually put money back into the economy and often pay a s*** load of tax too.
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Mainly old people save, because the majority of the younger generations can't. I'm lucky, I've done alright for myself, but gets on my nerves when people suggest that if you stopped having a Starbucks a day you'd suddenly have the £20K deposit for a house, when your rent and bills are 70 - 80% of your income.
 
KitsuneAndy said:
Mainly old people save, because the majority of the younger generations can't. I'm lucky, I've done alright for myself, but gets on my nerves when people suggest that if you stopped having a Starbucks a day you'd suddenly have the £20K deposit for a house, when your rent and bills are 70 - 80% of your income.
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Think it was more as one of the younger generation said the latest iPhone on contract and new leased Audi, bit more than a coffee a day then.
Do you not think that house deposits were always hard to save for, we did drink, smoke, buy cars and have girlfriends in the 70's too.
 
tijuana taxi said:
Think it was more as one of the younger generation said the latest iPhone on contract and new leased Audi, bit more than a coffee a day then.
Do you not think that house deposits were always hard to save for, we did drink, smoke, buy cars and have girlfriends in the 70's too.
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As a percentage of income they were much much lower.
 
tijuana taxi said:
You seem very embittered, do you think only old people save, retired people do actually put money back into the economy and often pay a s*** load of tax too.
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My current forecast for my private pension means I will pay income tax even after retirement, approxiamately 50% of my state pension will be clawed back in income tax if I can manage to keep my drawdown low enough. The money in my drawdown was put into the scheme as a tax deductable "expense" at the basic rate, oddly if I drawdown too much I will push myself into the higher tax bracket, dont recal that being part of the deal. In addition the money I had "stashed" into a fund in 1990 was transferred from my then employer into my new employer, within 10 years it had doubled, another 10 years later it was worth the original transfer value.
I also came out of Serps, as advised by both Govt and financial adviser, doesnt seem as if that grew as much as it should have and 7 years after coming out of Serps the Govt decide everyone should go back into it as the funds werent gaining as they thought they would. Fortunately because I have been working in excess of 40 years I still qualify for almost the full new pension, I bet there are a few that dont and they wont know that for a few years yet.
In short you're bu88ered whatever you do.
So enjoy where you live now, renting or buying and stop worrying what the future will bring because whatever you or I do it wont make two beans of a difference.

Matt
 
KitsuneAndy said:
As a percentage of income they ( deposits) were much much lower.
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On a slightly above average wage, about 10% in my case.

MatBin said:
In short you're bu88ered whatever you do.
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Pretty much, and I don't see it getting any better either, unless of course we all put our money off shore ;) ( controversial :D )
 
Cobra said:
On a slightly above average wage, about 10% in my case.


Pretty much, and I don't see it getting any better either, unless of course we all put our money off shore ;) ( controversial :D )
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I think you need a few quid to do that, maybe if all the TP members clubbed together?
 
MatBin said:
I think you need a few quid to do that, maybe if all the TP members clubbed together?
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Sorry i'm not royalty, a Tory peer or an actor, but if everyone else is in I'll risk a ton.
Would do more, but a nice Nigerian man is handling most of my investments
 
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tijuana taxi said:
Sorry i'm not royalty, a Tory peer or an actor, but if everyone else is in I'll risk a ton.
Would do more, but a nice Nigerian man is handling most of my investments
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You're supposed to be handling his, doh!
 
tijuana taxi said:
OK you have got it harder than any previous generation, sure my late ma would have agreed.
Whats the Blitz, being evacuated,rationing and then orphaned at 15 by the war got on not getting on the housing ladder.
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As stated previously it has been proven worldwide by many studies that this generation is the first ever to be financially worse off than their predecessors.

I must admit we don't have a world war and conscription to consider, but we have lunatics driving trucks into people, weilding knives in the streets and bombing music venues, foreign governments actively working to undermine democracy. Lunatics in charge of countries with access to nukes or are trying to develop them. No, nothing to worry about on the security front...

And yes getting the housing ladder has always been difficult, the difference is there's now a massive shortage of council housing and rent is significantly higher (approx 3x times the cost to the baby boomer generation after adjusting for inflation & wage increases).
 
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Uneducated_Rick said:
As stated previously it has been proven worldwide by many studies that this generation is the first ever to be financially worse off than their predecessors.

I must admit we don't have a world war and conscription to consider, but we have lunatics driving trucks into people, weilding knives in the streets and bombing music venues, foreign governments actively working to undermine democracy. Lunatics in charge of countries with access to nukes or are trying to develop them. No, nothing to worry about on the security front...

And yes getting the housing ladder has always been difficult, the difference is there's now a massive shortage of council housing and rent is significantly higher (approx 3x times the cost to the baby boomer generation after adjusting for inflation & wage increases).
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I agree and having a daughter in her mid twenties fully appreciate the situation, but keep blaming retired people who went to work and paid their dues is pointless.
Renting is a big problem that nobody seems to want to deal with, lets not go to selling off the council housing stock, massive mistake apart from to those who benefitted.

Voting turn out amongst the young is very low, maybe changed a bit at the last election, but I'm sure Brexit would have been avoided if the young had bothered to vote.
Pensions also need addressing, too many people are buying to let so they can have cash at retirement, again this is often people still working not only retirees.

My parents and to an extent their offspring were far less materialistic than current generations, really cannot see youngsters today being happy with living in a prefab
As a kid some of my friends did and it was an ideal solution to housing shortages after the bombing devastation, something similar would be handy now.

Would be nice to think the generations could work together to sort something out, but I'm not holding my breath
 
tijuana taxi said:
Think it was more as one of the younger generation said the latest iPhone on contract and new leased Audi, bit more than a coffee a day then.
Do you not think that house deposits were always hard to save for, we did drink, smoke, buy cars and have girlfriends in the 70's too.
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In terms of house buying this generation have it far worse. It was easy in the 70s and 80s to find a nice house for 2.5/3 times salary. You simply cant do that now.
 
cambsno said:
In terms of house buying this generation have it far worse. It was easy in the 70s and 80s to find a nice house for 2.5/3 times salary. You simply cant do that now.
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Far too simplistic, so ok you couldn't fly all over the planet cheap as chips back then.
Easy to cherry pick, fact is something needs to be sorted out and playing the blame game helps nobody apart from the wealthy (and no that's not the working class retired or otherwise)
 
tijuana taxi said:
Think it was more as one of the younger generation said the latest iPhone on contract and new leased Audi, bit more than a coffee a day then.
Do you not think that house deposits were always hard to save for, we did drink, smoke, buy cars and have girlfriends in the 70's too.
Click to expand...

I wonder if some people think "I'll never be able to save up the £20K needed for a deposit for a house, so I'm just going to buy myself a nice car instead, may as well have something nice".

Not me mind, my current car cost a massive £2700.
 
tijuana taxi said:
I agree and having a daughter in her mid twenties fully appreciate the situation, but keep blaming retired people who went to work and paid their dues is pointless.
Renting is a big problem that nobody seems to want to deal with, lets not go to selling off the council housing stock, massive mistake apart from to those who benefitted.

Voting turn out amongst the young is very low, maybe changed a bit at the last election, but I'm sure Brexit would have been avoided if the young had bothered to vote.
Pensions also need addressing, too many people are buying to let so they can have cash at retirement, again this is often people still working not only retirees.

My parents and to an extent their offspring were far less materialistic than current generations, really cannot see youngsters today being happy with living in a prefab
As a kid some of my friends did and it was an ideal solution to housing shortages after the bombing devastation, something similar would be handy now.

Would be nice to think the generations could work together to sort something out, but I'm not holding my breath
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For what it's worth I think the right to buy wasn;t a totally bad idea. I think that councils should have been allowed to reinvest that money into new housing stock. And the council buy back at massively inflated prices is a joke. Like most things it started as a reaonable concept that wasn't implemented properly (the bane of every government idea ever).

I don't blame people who worked hard and who retired and want the pension they were told they were going to get.

I blame the people who came up with final salary pensions (a state promoted ponzi scheme IMO). I blame big business who avoid tax I blame tax lawyers for identifying loop holes & politicians for not closing them. I blame bankers for taking ridiculous risks.

I don't accept people saying that it's easy, or that people now make bad choices, or that it's not as bad as it is made out to be.
 
Seems to me nowadays that all people want to do is live for today and blame the government for not controlling everything and then in the next sentence blame the nanny state for yep....controlling everything......

there seems to be quite a lot of families out there that literally consider savings and pensions to be for the rich and they are in for a very rude surprise when passing their 50s and suddenly realising they will have a nice house and almost zero money to look after it or enjoy it.

the biggest change I see that has pushed that attitude is now people want to party their lungs out until 40 then start a family and all the massive costs involved.
So by the time those kids are out of the way and in university they are cruising into their 60s with very little in the way of fall back savings.

go back to our parents and my mum was 23 when she had me and 24 for my sister, all done and left home by the time she was 45 so she had 20+ years to finish paying the mortgage and save for retirement and pensions.

I get that people want to live differently nowadays but that doesn't make them smart and witty just choosing differently.
 
wonder if some people think "I'll never be able to save up the £20K needed for a deposit for a house, so I'm just going to buy myself a nice car instead, may as well have something nice".
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Quite possibly and good luck to them, but can't have everything and that has always been the same.
My last car (V Reg Corolla) was bought from the family of a deceased friend for the princely sum of 500 quid and we had it for nine years until earlier this year.

Uneducated_Rick said:
I blame the people who came up with final salary pensions
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So people getting a decent pension to live on in retirement was a bad idea, why?
 
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tijuana taxi said:
So people getting a decent pension to live on in retirement was a bad idea, why?
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I was wondering the same thing. After all it's only my employer and myself that have paid into mine.
 
nilagin said:
I was wondering the same thing. After all it's only my employer and myself that have paid into mine.
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Exactly, thought everyone wanted this type of pension that gives a guaranteed return, not often we agree is it :)

Maybe referring to public funded organisations such as the civil service, education etc
 
I am a company director and have been for 6+ years and it has been me and me paying into my pension.
not one sole has payed 1p to help me out in that respect.
 
I am a company director and have been for 6+ years and it has been me and me paying into my pension.
not one sole has payed 1p to help me out in that respect.
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Hope its not a proof reading company :)
 
DG Phototraining said:
You have a poor memory Matt - it was 15.4% for quite some time when we bought our first house in the 80s

But yes, I can't see how a .25% increase will do anything but cause people with sod all spare cash to have even less spare cash, and hence be more inclined to demand a pay rise; and people with savings accounts won't even notice a difference
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Bank of england base rate never hit 15% it was 14.87 for 1 yr two days and then dropped to 13.87% it is somewhat a myth that interst rates were 15% some mortagages were for a very short period.

http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp
 
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shapeshifter said:
Bank of england base rate never hit 15% it was 14.87 for two days and then dropped to 13.87% it is somewhat a myth that interst rates were 15% some mortagages were for a very short period.

http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp
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Remember it well, we were on holiday in Devon and heard it on the radio, think it was the day Sterling/Euro went down the toilet.
Our mortgage did hit 15%, but it was usually around 12%, not easy when a one percent rise changed the monthly cost so much.
Always getting letters telling us the new rate, seemed to shift every couple of months, probably didn't though.
 
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tijuana taxi said:
So people getting a decent pension to live on in retirement was a bad idea, why?
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For people that were promised it and paid in to it then they should get what they were promised no qualms. That promise should not have been made IMO because paying in for years at lower amounts, and then getting withdrawals based on the final amount will never add up. Average salary pensions are far more representative and mean that the amount paid out is linked to lifetime value paid in not what you do for the last 6/12 months before retiring.

The only way you can pay out at a final salary level for everyone is by either having a portfolio behind that massively outperforms inflation for decades (never going to happen), or having an ever growing number of people paying in at the bottom to support the people at the top - hence refering to it as a ponzi scheme.
 
shapeshifter said:
Bank of england base rate never hit 15% it was 14.87 for two days and then dropped to 13.87% it is somewhat a myth that interst rates were 15% some mortagages were for a very short period.

http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp
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For clarity it was increased to 14.87% on 6th October 1989
It was reduced to 13.87% on 8th October 1990 (a full year later)

In the 80's it peaked at 16% on the 3rd July 1980
 
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KitsuneAndy said:
I wonder if some people think "I'll never be able to save up the £20K needed for a deposit for a house, so I'm just going to buy myself a nice car instead, may as well have something nice".
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I think thats a very good point actually. And it wouldn't surprise me in the least.

Mr Bump said:
dyslexic IT company :)
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Well stop buying cheap Chinese keyboards then :p

Uneducated_Rick said:
For what it's worth I think the right to buy wasn;t a totally bad idea. I think that councils should have been allowed to reinvest that money into new housing stock.
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I agree it was a great idea in principle to get people on the property ladder, but as you say, it was badly managed. I thought the idea was to actually put the money into new council houses.
Instead we saw a massive rise of private companies jumping in there. And of course the rent prices were reflected in this.
 
The only way you can pay out at a final salary level for everyone is by either having a portfolio behind that massively outperforms inflation for decades
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Property certainly has and not sure, but would guess the FTSE has too, two places where many pensions schemes invest their funds.
 
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