State Pension Awareness.

[TeeDee]

I have been off work for a long time due to ill health, to have the goal; when I return to work of which hopefully will be in the next year or two, probably working for myself, I don't intend to retire and I don't intend to retire through already knowing just what kind of life can be lead on the amount the state pension affords.

I hope you can return to work promptly and in a field you enjoy. I think its an excellent idea to work for oneself ( at least eventually ) and I concur that the state pension may be a rude shock to many - I really hate nihilism as a concept but for the younger generation i can only see it a hard road forward.

 

[TeeDee]

Seems an appropriate place to put it.

So the B.O.E would seem to be most likely to trial NEGATIVE Interest Rates in an attempt to stimulate the Economy.

Negative interest rates what effect do they have on your savings?

Negative Interest Rates, what effects do they have on your savings, this means you could start to pay the bank to hold your money.

invoice-funding.co.uk

Could your bank charge you to save money with them?

Britain's savers could soon be charged to hold money with their banks after the Bank of England left itself wide open to setting interest rates negative for the first time.

www.thisismoney.co.uk

Interesting times ahead.

 

[TeeDee]

I can also see potentially Negative Rate Mortgages being offered , which is a brain turner but from the financial sector seems to make sense.

Danish bank launches world’s first negative interest rate mortgage

Jyske Bank will effectively pay borrowers 0.5% a year to take out a loan

www.theguardian.com

 

[Broch]

The only reason to hold capital in a bank at the moment is because you know you won't lose out to Covid-19 and Brexit - if rates go negative there will be a run on the banks because you may as well have it under your mattress. I guess some people will look to move it to investments but with current uncertainties I think the majority won't do that immediately . So, if banks want to keep our money to invest in growth they would be brave to apply negative rates but stranger things have happened

 

[TeeDee]

True - The only things that seem to be positive are Property and Gold prices due to the uncertainity.

 

[santaman2000]

The only reason to hold capital in a bank at the moment is because you know you won't lose out to Covid-19 and Brexit - if rates go negative there will be a run on the banks because you may as well have it under your mattress. I guess some people will look to move it to investments but with current uncertainties I think the majority won't do that immediately . So, if banks want to keep our money to invest in growth they would be brave to apply negative rates but stranger things have happened

I usually don’t like the idea of converting currency to precious metals, but you just described one of the few scenarios where I might consider it.