By 7 percent report ONS
Everyone with a mortgage that has managed to secure a low interest rate is laughing all the way to the bank with some even halving their monthly outgoings in the years since the start of the recession.
However, savers are not having such a good time, with interest rates at rock bottom, their return on investments are typically lower than the rate of inflation.
Less disposable income by £1,000
The Office for National Statistics (ONS) report that the average disposable income has dropped by roughly £1,000 since the start of the recession. In the past seven years, since 2008, disposable income, excluding mortgage repayments has decreased from £15,694 to £14,5o6.
Savers are suffering
On the whole the population are better off, due to the decrease in mortgage rate interest, but on the other hand, pensioners and savers have been feeling the squeeze in their financial position.
ONS report that savers are on average 7 percent worse off than they were in 2008.
What now for savers?
The Bank of England (BoE) is expected the raise the interest rate no sooner than the start of 2016, however there is still uncertainty as to when rates could rise following this date.
Rates are expected to rise, but Mark Carney, BoE, has suggested that they will be steadily increased with a peak at around 2.5 percent in three years, which is half the historical average.
There are still some high interest paying current accounts available and other investment options, depending on your personal circumstances.
Dental & Medical Financial Services offer bespoke investment advice for doctors and dentists, including guidance on which savings accounts will give the best return. Call today to connect with a specialist adviser.