Brits overestimate their savings
Ever the optimists, Brits are overestimating how much their savings are actually worth says a new report.
National Savings and Investments reveals that three-quarters of UK consumers are not taking inflation into account when they think about the value of their savings.
This suggests that they are underestimating the impact that inflation will have on their nest eggs, which could be potentially worrying.
'Most people know that £1,000 buys much less today than it would have ten years ago,' said said Karen Jones, National Savings marketing director.
'Yet when it comes to saving for the future, the majority of people seem to be disregarding the impact that future inflation will have on their investments,' she warned.
National Savings has also commented that many people are not taking inflation into account when opening or choosing a savings account.
According to the experts, savers need an interest rate of at least 2.9 per cent to maintain the same purchasing power, however two savers in three do not know what the current inflation rate actually is.
Of the age group who perhaps most needs to worry about investment and pensions, the 16 to 24's, only 10 per cent of these are financially savvy, suggesting that people need to swot up on their inflation knowledge. | 
