We pensioners and our savings.

[Deleted User]

What on earth are we going to do as pensioners, now that income from savings has been slashed? As though it wasn`t difficult enough at the moment. :mad:

Please keep this on the silver board as we are the ones directly affected

Farway

I think most of us will have to shop around a bit to find even half decent interest rates

The Daily Mail [spit] has article today with some guides on rates, but no doubt some will change

http://www.thisismoney.co.uk/news/article.html?in_article_id=456930&in_page_id=2&in_a_source=&ct=5

Errata

It's a black cloud for sure, but it has a silver lining in that we are the 1930's 40's and 50's generation that learned thrift as a way of life so we'll be better able to cope both financially and psychologically than younger generations.

[Deleted User]

I read that rates will generally change at the beginning of december and I am expecting the worst. I agree errata but I have seen some articles on pensioners who have been very badly hit by this reduction in savings interest

seven-day-weekend

As well as the savings problem, our income has also been hit by the terrible pound/euro exchange rate - when we first came here to live in Spain it was 1.58 euros to the £, yesterday it was 1.18 so we lose £40 in every hundred which when you only have a small income is a huge amount!

We have no choice about our income being paid in £s as it comes from the UK - can't get a job here as unemployment in this part of rural Spain is 20% for Spaniards, let alone for pidgin-Spanish-speaking foreigners approaching retirement age.

We have cut back on everything we can and are waiting for 2009 to go quickly so that I can get my State Pension in January 2010! (Although that will be in £s too).

Luckily we have no rent or mortgage to pay.

It is not a huge problem yet but if it goes much lower it may become one.

EdInvestor

seven-day-weekend wrote: »

As well as the savings problem, our income has also been hit by the terrible pound/euro exchange rate - when we first came here to live in Spain it was 1.58 euros to the £, yesterday it was 1.18

This should improve soon when the ECB cuts Euro rates properly.I see both Germany and Italy have gone into full recession today (ahead of the UK!)and Spain is imminent, so you shouldn't have too long to wait.

seven-day-weekend

Thanks - hope you're right EdInvestor! I keep trying to delay transferring any money over, but can't delay for ever.

If it gets to 1.3 I'll ring the Co-OP Bank instantly!

jennifernil

I have been moving as much as possible into fixed rates, mainly 1 year fixes for our longer term savings, and a 3 month one for the cash we will need to continue our "ski-ing" next spring...........off to Spain/Portugal for 3 months with our caravan. Just hope the Euro exchange rate improves before then!