Stealing from those who saved...

Lets imagine if you will, an old lady. Lets call her Doris.

Doris worked hard for years, putting away a little money so when she retired she could afford a pension. In her twilight years she finaly retired with £100,000 in investments.

Now, assuming she she had investments that tracked the base rate of interest (rather then, say, the stock market!!) a year ago she would have got about 5% on that, so a modest £5,000. Enough to live on, with prudence and a state pension - that is, if she qualifies for it, with all the means testing...

Yesterday she would have been getting £1500 a year - which isn't much. I very much doubt it's possible to live on £30 a week in the uk. Fuel bills and council tax alone...

And today? Why, today the bank of England dropped interest rates again, to their lowest EVER recorded figure in the history of the bank of England. They now stand at 1%. Cutting our Doris' interest by 33%.

The real question then really is - at this rate, is saving for pension in the UK actualy worth the effort?

And what can our Doris do now??