Pensioners £4,000 a year worse off as inflation and low interest rates take their toll

The Bank of England’s attempts to prop up the economy have cut typical pensioners’ incomes by more than £4,000 a year and sliced almost £10,000 off the real value of their savings.

Drastic cuts in interest rates and the Bank’s policy of printing new money have delivered a triple blow to pensioners:

  • their income from savings has been sharply reduced
  • inflation is eating away at their capital
  • annuity rates, which determine the income from private pension pots, have fallen significantly

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