Is it just me, or do you feel aggrieved too?

Susievintage

As a child (35 years ago) I was taught to save, to put money aside for a rainy day to ensure that you can always take care of yourself and are never a burden on anyone else. A chaotic family life and bitter parental divorce brought out the natural squirrel in me, and I still save like a demon. I've paid off my mortgage, and put money into a pension each month.

But now I feel like a fool. With piddling interest rates, my savings are losing value by the minute. My pension contributions ensure that fund managers and my own IFA get a new Mercedes at least once a year, while I drive a 25-year old car. And we all know there'll be nothing left in the state pension pot in about a decade's time.

So what I should have done is spend, spend, spend! Why did no-one recommend this?

sheffield_lad

Sorry Susie, tes it looks like you turned up too late for the party 2000-2009 where if you had turned up and told them you need money but didn't want to work (lazy), but wanted all what next door has NOW!!!! You would have been welcomed to the orgy with open arms.

Alas you are also not allowed into the MSE party where, if you did the above you blame the banks, politicians, your neighbour in fact anyone but yourself for having too much debt. 'why didn't they refuse me' goes the cry and no responsibility for their own actions.

Sorry Susie, 2 parties and you have missed both.

Susievintage

Tee hee, Howee - you're absolutely right. :rotfl: They all partied on without me, while I was working and squirreling and saving! My niece (aged 25) is heavily in debt but I'm beginning to think she's the smart one, not me!

gadgetmind

Susievintage wrote: »

My pension contributions ensure that fund managers and my own IFA get a new Mercedes at least once a year

It is possible to take the fat cat middle-men out of the loop. It's a bit more work, and isn't for everyone, but you can strip a few percent pa of costs out of things.

dtsazza

Susievintage wrote: »

As a child (35 years ago) I was taught to save, to put money aside for a rainy day to ensure that you can always take care of yourself and are never a burden on anyone else. A chaotic family life and bitter parental divorce brought out the natural squirrel in me, and I still save like a demon. I've paid off my mortgage, and put money into a pension each month.

But now I feel like a fool. With piddling interest rates, my savings are losing value by the minute

It's not ideal - and the current interest rates do make a bit of a mockery of balance.

But still, while other people are £10k in debt, you're £10k in credit (say). You are £20k better off than them, interest or not. And your ethos of putting money aside means that you can always ride a crisis, and are never at the whims of creditors.

Remember, Micawber's line in Dickens says nothing about happiness being predicated on interest rates - the main thing is that you spend less than you earn and build up a capital buffer.

Don't get me wrong, I'm very disappointed by the BoE's stance on interest rates and inflation. But savers are still much better off than borrowers in absolute terms.

My pension contributions ensure that fund managers and my own IFA get a new Mercedes at least once a year, while I drive a 25-year old car.

That's entirely within your power, though. Is your IFA charging you too much for his services? If so, get a better one or do it yourself. If not it seems odd to begrudge him appropriate rewards for supplying a good service.

Ditto with fund managers. If they're not adding much for their fee, then consider switching to low-fee tracker funds instead. And if they are getting you better results net of the fee, then they're earning those Mercs! :-)

dunstonh

My pension contributions ensure that fund managers and my own IFA get a new Mercedes at least once a year, while I drive a 25-year old car.

If you study via further/higher education and get a better job then maybe you can too. Not a fan of mercs personally.

celtic123

to be honest a bank should only be used for regular access savings. why save and get lousy rates when you can grow it in an index tracker oeic or other stock market linked funds or in corporate bonds with significantly higher yields.over last 100 years stock market has average return of 10 to 12%! and that is averaging it out through booms,recessions etc

p00hsticks

Susievintage wrote: »

And we all know there'll be nothing left in the state pension pot in about a decade's time.

So what I should have done is spend, spend, spend! Why did no-one recommend this?

So you aren't expecting to receive a state pension, but think you should have spent rather than saved or invested in your own pension.

do you plan on working until you die ? >

snowqueen555

And we all know there'll be nothing left in the state pension pot in about a decade's time.

the state doesn't even have a pension "pot", its all financed off current taxes, pretty grim isn't it

JayBrun

You may or may not take consolation from the fact that whilst savers are being hung out to dry, receiving low interest on their savings whilst the value reduces by inflation, this is for the benefit of others and the economy in general.

You may not get much sympathy from some of those you are helping out and indeed may well be attacked for having more than them to lose.

You may also have to sell your property one day to pay for care.
Had you gone on a spending spree, which some who could have saved chose to do, the taxpayer would have paid.

Some of the spending which did take place of course was based on borrowing money as if there was no tomorrow, which makes the problem worse for those involved and the rest of us who have to help sort out the mess.

There's a moral there somewhere - if moral is the right word.

Oldernotwiser

I would just thank your lucky stars that you earn enough to have done all that and to have savings as well. You're in a situation that millions would be envious of and still you want more.