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Frank Hovis

Savings rate lowest since records began (1963)

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2 hours ago, Frank Hovis said:

Down to a paltry 3.3%.

Sky high rents, council tax and utilities shooting up, price inflation beginning to bite, minimal wage inflation for ten years.

That's why people aren't saving. They can't.

Coming soon: 2%.

http://www.bbc.co.uk/news/business-39453844

In the good old days debt would be 'inflated away' today it is savings that are 'inflated away'. So even if you could save why bother, far better to buy 'stuff' that will be more expensive in the future.

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I can completely imagine that on average people saved a good deal more prior to 1963 than they have since due to the fact that the welfare state was in its infancy. Therefore the healine could quite easily be re-worked as 'Savings rates reach an all-time low'.

Bearing in mind that a lot of folks are only saving for a deposit on a house, if those savings are removed from the equation the situation is even worse.

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The irony is that government constantly tells the population to save for old age!

If they want a financially self sufficient population saving to support their old age well IMO they need to make saving attractive or else people will not be motivated.

Of course, I believe that government doesn't give two hoots about ordinary people manage.

Personally I haven't had a lot to save over the years but luckily I pay no rent or mortgage and I have a small nest egg. Other than that I spend frugally on life's pleasures.

I don't blame a lot of young people for saying f*ck it, what's the point of saving when interest rates are so low.

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