Savings: Inflation wipes off 10% of the value of savings

A new report by Moneyfacts has shown that the recent high levels of inflation have wiped nearly 10% off the real value of people’s savings over the past five years. Savers, and those people on fixed incomes, for example retirees who have bought a level Annuity, have seen the destructive power of inflation over the past couple of years. Moneyfacts says that £10,000 saved five years ago would now have the buying power equivalent to £9,208, assuming basic rate tax had been deducted and an average rate of interest received....