Depression/Recession/Coronavirus - will my savings be worthless?

[yulertula]

Recently sold my flat (made a good amount of money on it), now renting as haven't been able to find a new place I like yet, plus thought being chain free would help with next purchase (live in the south east)...

Am now worried that Coronavirus situation will mean all my money sitting in my savings account is not a good thing? And will rapidly lose its value 😬

AIBU?

I understand OP. I am very fortunate to be retired so no work worries (was a teacher), mortgage paid and some money in the bank. I do worry a bit about my hard earned savings that I will rely on later in life but appreciate that others have problems that are so much worse and more immediate. One day we will be on the other side of this.

I don't know that it will make much difference, if it's in cash. Interest rates were already shite anyway. If anything you are likely to benefit because you sold before this happened and there's likely to be a drop in property prices before you buy again. Which is no bad thing, and I say this as a homeowner.

I’m worried too. I’m not far off retirement and my pension will be tanking at the moment, and we have good savings to boost the pension but these are at risk of inflation or loss. And we had planned to downsize on retirement too but the value of our property will be dropping. So the economic consequences of this will impact me for the rest of my life.

@CandyLeBonBon
Looking online for answers is one thing but being able to chat to various people and get a spread of annecdotes and views quickly is why I come to mumsnet.
I usually come to mumsnet before the nhs website for health concerns because people like to share their stories in detail and also when I was worried about the costs my mortgage broker gave me not too long ago, i couldn't find anything online but mumsnetters could answer my question.

Its easier to ask a specific question and get Lots of peoples opinions than it is from 'the internet'

The OP is allowed to be worried because if we get hyperinflation, her savings will be worthless. But I suppose that's what a lot of you want.

Low interest rates, well we've had those for a decade anyway.

If it cheers you up I think house prices are about to crash. I actually think you're in a pretty good position, make sure your money is spread but other than that I'd sit tight for now.

@Purplewithred We are in a similar position. DH and I were hoping to take early retirement within the next year or so. Well not so early for him as he is already in his 60s. I daren't even look at my pension savings now I think they will have plummetted in the last few weeks.

Someone on the radio was trying to make soothing noises about pensions being long term investments so people shouldn't worry too much. Well that's OK unless you were hoping your retirement to be imminent

You said you sold your flat and made a good amount of money on it.
That’s not hard work and saving, that’s economic luck.

So well done you!

@staringatonewall yes the profit is economic luck (though may mean nothing if hyperinflation were to happen) but saving for a deposit in the first place wasn't a doddle, neither was paying the mortgage every month.

Sorry to hear about those with pensions who were planning to retire soon - that's really tough. Hope the market stabilises soon and the impact is not too severe on your plans 🤞