Annuity rates ‘have gone into freefall’: Money-printing triggers slump - and it may g

homelessskilledworker

http://www.dailymail.co.uk/news/article-2215301/Annuity-rates-gone-freefall--Money-printing-triggers-slump--worse.html#comments


I am still of the opinion that the BOE will continue to pander to the heavily indebted homeowner for the foreseeable future, but this is quite an injustice and I can see a lot of grey p****d off voters becoming more vocal in the next few years.

PaulF81

The heavily indebted homeowner is just having the wealth retransferred back that the Crusties have stolen from us for years in HPI gains.

Let them eat cake (with their falsies in).

WestonDave

The alternative is to let home owners go under, which would push the banks under, and create an unsustainable call on FSA guarantee funds. So in effect the choice for savers is to have low interest or lose their capital.

Another way of looking at it is that they are getting low returns on low risk investments - if they want better returns they are available but risk losing their capital.

homelessskilledworker

I have taken on a lot of HMO work on in recent years and have noticed how many of those in retirement or close to it are now investing in property.
I sure many of them just see pensions as a waste of time, if this government or any other want to encourage and convince more people to take up pensions they are going to have to work a lot harder.

homelessskilledworker

WestonDave wrote: »

The alternative is to let home owners go under, which would push the banks under, and create an unsustainable call on FSA guarantee funds. So in effect the choice for savers is to have low interest or lose their capital.

Another way of looking at it is that they are getting low returns on low risk investments - if they want better returns they are available but risk losing their capital.

I agree.

Sadly the country is now being held to ransom in order to save those heavily in debt, mortgage or otherwise.

ILW

WestonDave wrote: »

The alternative is to let home owners go under, which would push the banks under, and create an unsustainable call on FSA guarantee funds. So in effect the choice for savers is to have low interest or lose their capital.

Another way of looking at it is that they are getting low returns on low risk investments - if they want better returns they are available but risk losing their capital.

Anyone who is likely to go under due to a base rate of say 5%, should never have bought in the first place.

The_White_Horse

can't they reverse the raid that Gordon Brown did on pensions?

ILW

homelessskilledworker wrote: »

I have taken on a lot of HMO work on in recent years and have noticed how many of those in retirement or close to it are now investing in property.
I sure many of them just see pensions as a waste of time, if this government or any other want to encourage and convince more people to take up pensions they are going to have to work a lot harder.

That is quite worrying. Just buying up BTLs does very little for employment or the economy as a whole, whereas savings of one sort or another do tend to be lent to businesses and entrepreneurs.

purch

homelessskilledworker wrote: »

I am still of the opinion that the BOE will continue to pander to the heavily indebted homeowner for the foreseeable future,

The longer you continue to think that, the longer you will be behind the curve.

If you think 1/2 % Base Rate and QE has anything to do with "heavily indebted homeowners" you are (as usual), being woefully naive.

andyroberts1967

Interest rates and savings rates have been mega-low for years now, savers should be used to it by now and have made some alternative investment plans if it really affects them.
As a mortgage holder I find it personally a huge benefit, and I've been vastly overpaying for the last 4 years or so, means I've shaved about 8 years off my mortgage and I should feel this benefit more and more in the years to come. I can't be the only one in this position, and I'm sure the long term position will be that there will be millions of people who will have surplus income in the years to come, thus boosting spending power and the economy in general.

What do people think?

lisyloo

and have made some alternative investment plans

Could you suggest something suitable for 85 year olds, who may need access please?

I don't think savers should whinge. If they want safety and access they should accept low rates, but at the same time you also have to accept that better returns are not available to everyone.
Those with not long to live don't want to tie-up their money.

I can't be the only one in this position

No, but there are also millions of "hard working families" and ordinary people who aren't on such good mortgage deals (perhaps they fixed) or who have found the savings swallowed up in higher fuel bills, less overtime etc.

the long term position will be that there will be millions of people who will have surplus income in the years to come, thus boosting spending power and the economy in general.

I have plenty of surplus money, but generally I'm putting it into ISAs and pensions etc. So I don't think all of us will go out and spend it.
In fact the savvy people who've done well (like you and I) are likely to be the sort that live within their means and aren't the type of people to go on a spending spree.

You need to look at the other side of coin.
Yes some people have more due to lower interest rates, but many don't for the reasons already mentioned. Lots of peple (including myself) are seeing their incomes go down.