Pay rises running at 2.5%

Generali

pinkteapot wrote: »

My company has frozen pay for the last five years. Any of you lot want to calculate how much worse off we are thanks to inflation and depress me on a Friday afternoon?

July 2007: RPI = 206.1
July 2012: RPI = 242.1

Inflation over the period (on average) = 17.5% according to the RPI (link).

Thus you are about 15% worse off than in July 2007 on average.

A caveat: it seems that the RPI might have been overstated over the past 12 years and especially over the last 4-5 years for quite technical reasons that I kinda understand but hope to post on here about in a couple of days once I'm sure I do understand so you may be a bit richer than you think(!).

Go into work on Monday and tell HR that I said it was okay for you to get a raise. What could possibly go wrong?

pinkteapot

DpchMd wrote: »

There are alternatives - you only live once.

For various reasons this is still the best option for me. Wouldn't hesitate to move if it wasn't.

Still, 15%.... Ouch.

Loughton_Monkey

Spare a thought for us "Woopiers" [Well off old persons in early retirement].

OK, we have a few RPI-linked Final Salary pensions coughing up the goods, and a few investments/pensions starting to grow again thanks to QE.

But our savings income is miserable!

My two year fixes [@4%] are running out and we can only get 3.6% now [Cahoot]. A few deals at 3.25% but apart from that, 3.06% is about the best we can do. That's 2.45% after tax. Well below inflation.

It has me crying into my large Gin & Tonic, not least because I'm down to my last 15 bottles (£9 a litre in Spain) so that in 3 months, I'll be forced to pay inflated UK prices - inflated far more than CPI since the Nanny State Government is scared that I'll get tanked up on 'cheap' supermarket booze before going out on a binge, getting naked, and being photographed with some naked American broad.

Moan over for the time being. Sun has gone over the yardarm. So I'm off downstairs for a large one now.

nollag2006

In my own place, pay rises have kept well above inflation in recent years but bonuses are well down.