Premium Bond Winner ?

Kim_13

eskbanker said:

Kim_13 said:

eskbanker said:

Primrose said:

I think this is the dilemma many older people have with their savings now especially with the policies of the current government.

Not completely sure what 'this' dilemma is that you refer to but if it relates to comparing returns from investing against premium bonds or savings accounts, then this is surely applicable to all age groups and ought to be less of an issue now than in the many previous years when both savings and PBs returned significantly less than inflation?

Older people are more likely to have sufficient funds so as to be holders of a significant amount of Premium Bonds (as it is generally better to utilise PSA and fill ISA first, plus younger people are paying into a pension rather than drawing down.) Of course that is not always the case and there are younger people who have done well for themselves, inherited a lump sum or whatever it might be, just as there are older people with limited means and qualifying for Pension Credit.

So it's a dilemma for wealthier people then, rather than older ones per se?

Kim_13 said:

It is more of an issue now as the PSA has not increased since 2016 and that coupled with higher returns for savers (which are a good thing) mean that more and more people face the conundrum of do I take the after tax return or make use of a tax free savings vehicle.

Unfortunately many people have an irrational view of tax and will do their utmost to avoid it, even to their overall detriment!

Wealthier, yes, but statistically there are probably more wealthier older people than wealthier people below say late 50s plus (as they will generally still have mortgages to pay and child related expenses of some sort, therefore less disposable income to save in Premium Bonds or whatever their product of choice might be.) So I did not think older was inaccurate and the post may have been written quickly, as many regulars will post here as a hobby while on public transport / their breaks etc.