Wages Fall Most for 50 Years

Wages Fall Most for 50 Years.

The Office for National Statistics has released figures that whilst wages have risen in pockets, overall in real spending power terms, take home pay and standards of living, wages have been falling since 2010.

This 4 year fall is the longest seen in the UK since 1964 i.e. 50 years.

Overall we are 2.2% poorer than we were in 2010.

Comment

This is a marked difference to the high inflation days of the 1970s and 80’s when wages were rising in real terms by over 2.5%.

Spending pressure prevails across the whole country.  We believe it is a necessary evil as austerity measures take effect and we need to balance not just the country’s books but our own personal finances.

In financial planning terms, we suggest we should all look at our budgets and consider overpaying on our mortgages and increasing our regular savings both in pensions and other vehicles such as ISAs.  Long term having lower debt and greater access to capital can only be for the better.  Interest rates will rise one day, so it makes sense to clear down debt.

The Office for National Statistics has released figures that whilst wages have risen in pockets