How do savers beat inflation now?

This is part of the governments' plans: everyone with savings going to have their wealth devalued amidst high inflation.

The Government is doing its best to stop people from saving. They obviously just want to artificially pump up the economy with even more debt.

Deja vu, anyone?

Wise Woman = no such thing

If investors refuse to look outside the box when it comes to investing then they will never find opportunity; it's the typical blinkered approach people take to investing. Is there such thing as a safe haven.....

The message is clear - unless you have to (house deposit etc) do not save in the present environment - spend and enjoy especially before the VAT rise.

The danger is that people will get sucked into alternative real investments which are currently at a premium. An example of this is the classic car market. Some of the junk on offer at amazing prices defies belief. A bit of inflation could be a good thing for savers providing the interest rates match.

Ms Bourke "How do savers beat inflation now". A very clear picture on what the problems are, and what they are going to be, but not a word to answer the headline.

The standard never changes.

well the last time classic cars were selling like they are today was in the early 90s, then every twat who knew what he liked was buying then like in the Modern art market, well shares and houses were no good so........

a few years latter people no longer talked about it in pubs or auction houses.

In the USA they even have auction programs on TV just for Vintage Cars.

Well they got to loose it somewhere aint they eh.

Presumably National Savings is part of the National Debt, just as are gilts. So a government dedicated to reducing the national debt is simply doing what it said it would do.

None of which is any consolation to savers like myself, but at least it makes sense.

At least bank interest isn't like it was when Harold Wilson let inflation rip out of control and we were getting 12-14% on savings accounts to cope with inflation of over 20%. The Tories are bad, but not that bad!

I thought investing in shares was supposed to be a hedge against inflation. Presumably we should choose companies that can increase there prices in line with inflation.

It might be bad for savers but it must be good for a nation of seriously indebted souls. Nothing like a spot of inflation to shrink that huge scary mortgage. 5 to 10 years of decent inflation and you will be able to stick it on your credit card. Just one caveat, you better hang on to your job and make sure your pay rises keep up with the inflation rate. Not always that easy.

Mark Gordon's point is all very well for those of working age, but those retired (many of whom like myself have never been seriously indebted) are not in such a happy position. Savings and retirement incomes are being eroded to pay for the recklessness of other parties. The change from RPI to CPI (if it happens, and it will) at NSandI just means they borrow my money and pay me back in devalued currency. I would not even be treading water, but sinking - it would be, in all but name, robbery.

By the way, Anonymous 1's comment is quite unaccurate, unecessary and out of place.

Arb.

Savers shop around and get as good a deal as you can - these will be tough times for many of us but complaining will not improve the situation. At least 3% interest should be possible and could tide you over until things improve.

In the late 1960s and in the 1970s when inflation last let rip in the UK, people on a fixed income (like pensioners or public sector workers subject to pay restarint) had no industrial muscle to guarantee payrises to keep up with inflation. they lost out massively as prices shot up and pensions, savings, state benefits and pay did not keep up with inflation. Only those in industries and occupations with a strong trade union presence were able to force pay rises out of employers and the government.

Thirty years later the demographic makeup of the UK today is very different: there are many more pensioners, lots of whom are on fixed incomes as before. Can the Con-Lib governement afford politically to alienate such a large swathe of the electorate by destroying savings as a result of inflating their way out of the debt crisis ?

Actually, Anonymous 1's comments are accurate, necessary and moderate. [This doesn't apply to his/her use of the apostrophe].

Unruly Oldgit,

Sorry, you're correct. I meant Anonymous 2!

Arb

"The government is concerned that banks and building societies are experiencing difficulties in raising funds for mortgages and small businesses!!!"

Do me a favour!! Does it think Joe Public is so daft he will invest at the current rates which commit him to about a 3% loss on his capital - whether you use RPI or CPI ?

I am always fascinated by economists' dichotomy of consumption v savings. Savings is consumption of an investmnent product. Some of these products improve in value over time, some tank, and some just wither away. We need to evaluate what we 'spend' on - goods&services, investment, or debt reduction.

Are the people with NS&I still holding significant debt on credit cards?

Does anyone out there seriously think that politicians will convert their talk about cutting state costs such as inflation proof salaries and pensions into actions ? The have and indeed will always take the easy way out via inflation. Half a dozen years of inflation around 5% will do wonders to their debt pile.

to beat inflation try googlng zopa .risky but hey faint heart and all that.