Oct 22 2008
Regular savers, including those saving for children, must review their goals in order to keep up with inflation, it has been suggested.
According to research conducted by Abbey Savings, over a third (35 per cent) of such people need to increase the amount of their monthly deposits in order to keep up with the increasing cost of living.
It said that non-taxpayers would need to up their saving deposits by £53.40, while basic rate taxpayers would need to add £66.00 and higher rate taxpayers £78.60.
"Regular savers should review their savings on an ongoing basis - and top up if necessary - to ensure that they are inflation proofing their capital," advised Reza Attar-Zadeh, director of savings and investments at Abbey.
Last week, financial research firm Defaqto suggested that the basic-rate taxpaying saver needs a gross return of 6.5 per cent just to keep up with inflation in the UK.
