Pensioners see incomes fall by £4,000 a year in real terms

New research has shown that the Bank of England’s decisions on interest rates and Quantitative easing (QE) since the credit crunch have made pensioners significantly worse off in real terms. Historically low interest rates, rising inflation and Bank’s £275 million of QE is having a disastrous affect on pensioners incomes and savings. Pensioners are being hit from three different sides. Firstly high inflation is eating away at the purchasing power of pensions. Secondly a combination of low interest rates and high inflation reducing the true value of savings and finally low gilt yields, which are partially due to the policy of QE, are ...