Thursday, March 20, 2014

Kind and wise and generous

Given the huge amount of money that has been pumped into Western economies since 2008 it is inevitable that inflation will eventually start to rise, and possibly start to rise dramatically.

Not this year.

Not within the next five or six years, given the fragility of the economy.

But eventually it will rise - indeed, inflating the debt away seems to be the covert strategy of Western economies.

Inflation destroys savings, particularly the savings of the elderly on fixed pensions.

Therefore the Chancellor's decision yesterday to allow the elderly access to the money in their pension funds seems kind and wise and generous.

Take your pension money and put it into tangible assets - property, land, perhaps antiques.  Use it to help your family.  Spend some money on your health.

Leaving it in a pension fund may not be the wisest choice as inflation will erode it to almost nothing.

Obviously I am not a financial advisor, and this is just my private view.

No comments: