Barry Coidan has the same burning question that many millions of households are confronting this year: how can he protect his hard-earned savings from rampant double-digit inflation?
The annual rate of the rise in the cost of living reached 10.1pc in the year to July, its highest level since 1982. The most pessimistic forecasts say it will exceed 22pc by next year, although the freeze on energy bills should help keep the figure under control.
Soaring prices will eat away at savings pots and retirement plans and savvy households are acting now to get ahead. Mr Coidan, who is 75 and retired, is keen to minimise the damage to his own finances.
He said: “We live comfortably. I enjoy a trip to the theatre and along with my wife will now and again splurge on the odd holiday. But really we are not big spenders and we save a lot of our pension each month.
“My biggest concern is protecting what we’ve already saved in an attempt to stop inflation from eating into it too much.”
Mr Coidan is a skilful saver. He receives an income of £2,500 from his Civil Service and state pensions each month, of which he is able to save £1,000.
The couple own their home outright and so have no mortgage or rental payments to meet. They have £90,000 in cash savings in accounts that pay between 0.6pc and 3.05pc in interest.
But Mr Coidan knows that keeping his savings in cash means they will lose value in real terms. The last time cash returns were this poor was in February 1976, according to analysis from the insurer Scottish Friendly and the Centre for Economics & Business Research, a consultancy.