Are you feeling the pinch of the current economic climate? Just because you are retired doesn’t mean you aren’t affected by the situation in the UK’s economy. High inflation and cuts in state pensions mean the real value of your pension, whether state or private, is being reduced every day. New research from HomeLet has found 1,074 66-70 year olds have recently sold their homes in order to release equity to fund their retirement. Times are tough, and this makes it all the more important to find savings and investments that work hard for your money. But what are the best savings products on the market right now?
Santander has recently been awarded the Moneyfacts’ prize for best personal finance provider of 2011. With Santander’s range of savings and investments it’s not hard to see why. One of its best products right now is the two-year fixed rate postal ISA. You have to invest £14,000 or more and keep it in the account for two years, but you can earn 3.5% completely tax-free. You can deposit this year’s cash ISA allowance, which is £5,340 and transfer any other cash ISAs you may already have. This is a great, low maintenance deal and offers a good rate of return, especially when the government’s base interest rate is still just 0.5%.
Your other alternative is to play with the market. Of course this may not seem like a real alternative now with the markets fluctuating so much. However, you should view stock market investments in the long term. Plus you can choose your level of risk. If you aren’t willing to loose your initial investment, you can choose to guarantee it with Santander’s fixed-term investments or stock market linked bonds.
However, if you do want to take on more risk, in order to make more of a profit, you can choose a more risky portfolio or premium investment product. The risks are greater but you will have access to some of the best fund managers in the world.
Knowing which type of savings account or investment product to pick can be daunting, especially if you have stuck with the same bank and basic savings account for years on end. But it does make sense to shop around. The current market is forcing banks to be more competitive to win business from consumers. You may not think it, but as a saver with a decent deposit you actually have a relatively large amount of power; make the most of it.
