There’s a new coin in town which may, tongue firmly in cheek here, become the symbol of the UK’s march out of Europe (it’s launched coincidentally the day before Article 50 is announced).
And, let’s get serious for a minute, according to a new analysis from Prudential, the new pound highlights the impact of inflation on retirement planning and income since the pound coin was first introduced.
In case you’re wondering when that was, it was way back in 1983. This was the year when Maggie Thatcher was on the throne and the Official Monster Raving Loony Party first contested an election (remember those days, before the loonies took power).
As for what that 1983 pound is worth today, taking into account the effects of inflation, it’s £3.10. To put that into some context, figures from the Office of National Statistics show that the cost of sliced white sliced loaf was 38 pence, compared to £1 in 2016. Worse news for fans of cheddar cheese, which was priced at £2.55 a kilo in 1983, but leapt to a staggering £7.19.
Vince Smith-Hughes, a retirement expert at Prudential, said: “Putting more money aside while still in work is, for many, the only way to offset rising inflation and ensure a higher standard of living in retirement. While saving as much as possible from as early as possible is the best way to build up a decent pension pot, spare money often feels hard to come by. However, making small changes to our lifestyles can help us when it comes to saving.”
And don’t forget, the pound coin we’re so familiar with, ceases to be legal tender in October. So, start checking your piggy banks, cushions behind the sofa and under your car seats. Its reckoned about £400 million worth of old pounds have been hoarded away by people, and some have been lost of course.
The old coins will be replaced with over 1.5 billion new ones and the Royal Mint reckons they are most secure coin in the world. So if you’re thinking of using a 3D printer to create your fortune, forget it.