Dec 5 2008
Some pensioners in the UK may suffer as a result of the cut in interest rates announced by the Bank of England yesterday (December 4th), a charity has warned.
Following its monthly two-day meeting, the Bank's monetary policy committee revealed it had lowered the rate by 100 basis points from three per cent to two per cent.
According to Age Concern, retirees with savings may be adversely affected by the move.
It said: "Many older people who rely on the interest from their savings to top up their income could be hit hard by these cuts, particularly as so many are already struggling to pay basic household bills."
The organisation went on to urge older savers to shop around for the best deals on savings accounts.
Recently, uSwitch.com revealed that nearly three million pensioners are hoping the stock market will provide them with an income, in addition to the state pension and any private pensions they may have.
