With inflation going the way it is what are you doing with savings?

[Onedropbeat]

Inflation rates are forecast to climb massively meaning any cash savings will fast become worth less and less

If you are fortunate to have some cash savings (not talking about £100k), of a few thousand to maybe £10k are you planning on doing anything with it to try and protect it’s worth and if so what?

@Onedropbeat

Inflation rates are forecast to climb massively meaning any cash savings will fast become worth less and less

If you are fortunate to have some cash savings (not talking about £100k), of a few thousand to maybe £10k are you planning on doing anything with it to try and protect it’s worth and if so what?

Who's forecasting inflation to 'climb massively' that is the question.

I don't see much appetite for inflation rising that much, and the forecasts I can see agree.

www.statista.com/statistics/306720/cpi-rate-forecast-uk/

Possibly higher unemployment, reduction in demand for retail and office space in high cost areas plus a high debt burden aren't usually a trigger for rampant inflation and that's where we're at right now.

But in any case, people do need some accessible savings even if it's spending power is diminishing slightly.

After all, if you lose your job, having 95% of something to fall back on is going to be a livesaver even if it won't buy quite as much as when you first earned it.

I think inflation is much less predictable than it was. Money held in savings has risen massively over the pandemic, whether that money will be spent rapidly as we come out of it isn't known, it could translate into inflation as pent up demand is satisfied, people could be cautious and keep money saved, it could be that unemployment rates rise and that counters inflation pressures.

I'm looking at mortgages as my deal is ending soon and it doesn't look like banks are expecting interest rates to increase much. BoE haven't ruled out negative rates.

Adding to pension
Maxing isa
Paying extra 10% mortgage every year

@BarbaraofSeville I think part of it is that inflation isn’t being reported correctly at the moment

Prices are currently so volatile it’s hard to measure.

A bag of gypsum that used to be £6 last year is now £46 because of demand and there’s similar happening across all of construction,
Il try and find some graphs from supply chain planners which are starting to warn about sky high inflation incoming

@drainrat

That’s incredible Hyperion, wow. At that level you’re outperforming several of the leading (ho hum) active fund managers.

No idea what we're doing either.

Drip feeding cash in every month.

Spreading across markets.

Some index trackers, some tech, some sustainability funds.

Some up, some down...but mostly up.

Combination of:
Premium bonds
Trackers
Fixed rate bonds- fixed for one year at 1.36%..
SIPP