'Life savings' - do people still have them?
Discussion
Yes, some of us have been saving since we started working full time - good pension schemes, max ISA protection, high interest accounts, stocks and shares. Now 'sitting pretty' relative to some of my 'live for the present' friends and colleagues who are only now realising they are completely screwed for retirement and no time to recover the situation - the same folks who thought us stupid for planning so far ahead, so long ago!
Boringly, we lived within our means but now have little fear of old age!
Boringly, we lived within our means but now have little fear of old age!
Garvin said:
Yes, some of us have been saving since we started working full time - good pension schemes, max ISA protection, high interest accounts, stocks and shares. Now 'sitting pretty' relative to some of my 'live for the present' friends and colleagues who are only now realising they are completely screwed for retirement and no time to recover the situation - the same folks who thought us stupid for planning so far ahead, so long ago!
Boringly, we lived within our means but now have little fear of old age!
Except that when they, and you, go into an old people's home, guess who will be forced to pay for it until almost every penny of that carefully hoarded stash has been drained away by the state... Boringly, we lived within our means but now have little fear of old age!
Sorry, I'm with you, you've done the right thing, but it won't necessarily ultimately put you in a better place.
Ari said:
No, its ok, the government have zeroed interest rates so those people will never have to suffer.
The savers suffer instead...
The tide is going out in the next few months & when the BoE get going in earnest, it'll be a different story. Easy credit is never that easy in the long run.The savers suffer instead...
BobToc said:
RizzoTheRat said:
Oh no it doesn't (sorry, bit to early for panto season?) There's loads of people who took out mortgages when rates were higher that reverted to a small amount above base rate at the end of the term, banks didn't expect rates to go so low, I know a couple of people paying less than my 1.49% Obviously interest rates on savings have fallen too but there's still ISAs paying more than that and you can even get 3% (pre tax) on a current account
I'm not sure that really stacks up for most people. If you're paying 40% tax on interest received (while you're wife isn't, I suspect most people with substantial savings are in the 40%+ bracket) then you need to earn 2.5% to breakeven on a 1.5% mortgage. The key problem most people will face is that there's typically a cap (as you note) on the amount of money that you can earn more than 2.5% on, and Santander's limit of 20k is pretty generous in the market. On a 20k mortgage, the 50bps spread will earn you £100/year, which while good for a night out, isn't quite life-changing.gottans said:
The cost of mortgage in interest payments far outstrips any interest on a savings account, would be cheaper paying part of the current mortgage off with savings if you have no other use for it.
A family friend has a pretty substantial mortgage at 1% below base. His bank manager has given up trying to persuade him to change products, as he was unable to offer any convincing benefits. Didn't stop him trying!Justin Cyder said:
Ari said:
No, its ok, the government have zeroed interest rates so those people will never have to suffer.
The savers suffer instead...
The tide is going out in the next few months & when the BoE get going in earnest, it'll be a different story. Easy credit is never that easy in the long run.The savers suffer instead...
oldcynic said:
A family friend has a pretty substantial mortgage at 1% below base. His bank manager has given up trying to persuade him to change products, as he was unable to offer any convincing benefits. Didn't stop him trying!
1% below base? Isn't base at 0.5% at the moment? So he's actually getting paid for his mortgage?eltax91 said:
1% below base? Isn't base at 0.5% at the moment? So he's actually getting paid for his mortgage?
That's my mortgage. It was on the news in 2008ish when about 1500 of us on that deal were written to by C&G to inform us that we wouldn't be getting paid now our mortgage rate was effectively their burden. Suits me, I've over paid the bd furiously ever since.Ari said:
Except that when they, and you, go into an old people's home, guess who will be forced to pay for it until almost every penny of that carefully hoarded stash has been drained away by the state...
Sorry, I'm with you, you've done the right thing, but it won't necessarily ultimately put you in a better place.
Actually it will, it'll put you in a much nicer nursing home.Sorry, I'm with you, you've done the right thing, but it won't necessarily ultimately put you in a better place.
Ari said:
Garvin said:
Yes, some of us have been saving since we started working full time - good pension schemes, max ISA protection, high interest accounts, stocks and shares. Now 'sitting pretty' relative to some of my 'live for the present' friends and colleagues who are only now realising they are completely screwed for retirement and no time to recover the situation - the same folks who thought us stupid for planning so far ahead, so long ago!
Boringly, we lived within our means but now have little fear of old age!
Except that when they, and you, go into an old people's home, guess who will be forced to pay for it until almost every penny of that carefully hoarded stash has been drained away by the state... Boringly, we lived within our means but now have little fear of old age!
Sorry, I'm with you, you've done the right thing, but it won't necessarily ultimately put you in a better place.
Garvin said:
Old peoples home means you are in no fit state to enjoy things to the full anymore. Therefore the trick is to consume the 'stash' and enjoy it at a rate that coincides with it hitting zero at the time, or just before, incarceration occurs!
Yes, but the difference in quality is huge, the level of care, attitude and tolerance varies enormously.My father has vascular dementia and is in a home, it's the best one in the area and for all that he is Ill he is also aware of his surroundings. He is as happy as he can be where he is, it's expensive but, so what? He can afford it, if he couldn't I would, I certainly wouldn't have him anywhere less than the best place I could find him.
And by best place I don't mean most expensive, i do mean best care but that costs, it costs much more than the state would pay,
HenryJM said:
Garvin said:
Old peoples home means you are in no fit state to enjoy things to the full anymore. Therefore the trick is to consume the 'stash' and enjoy it at a rate that coincides with it hitting zero at the time, or just before, incarceration occurs!
Yes, but the difference in quality is huge, the level of care, attitude and tolerance varies enormously.My father has vascular dementia and is in a home, it's the best one in the area and for all that he is Ill he is also aware of his surroundings. He is as happy as he can be where he is, it's expensive but, so what? He can afford it, if he couldn't I would, I certainly wouldn't have him anywhere less than the best place I could find him.
And by best place I don't mean most expensive, i do mean best care but that costs, it costs much more than the state would pay,
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