Savers favour keeping their money in cash, according to new research - even though £10,000 in cash could be worth just £8,500 in today’s money in five years’ time.
Seven in 10 (71%) people said they were still managing to save at least some money each month, despite the surge in living costs eating into their budgets, insurance company Aviva found. It said 75% of Isa savers tend to keep their savings in cash.
But it calculated that £10,000 in cash may be worth only about £8,500 in today’s money in five years’ time, if inflation moves in line with Office for Budget Responsibility (OBR) expectations. The calculation does not factor in any interest that people may earn on their cash savings, which would offset at least some of the decline in value.
