My wife and I are retired. We worked hard, we lived frugally, and we have a nest egg to get us through. Now John’s mob have come along and taken part of that nest egg away from us.
Staying clear of the finance companies, the best interest rate we can get on a term deposit is about 5%. Pay 21% (becoming 17.5%) in tax on that and it’s about 4% net.
That’s not much but it’s fine, until Bill English comes along and makes inflation 5.9%. Now our money is going to be worth about 2% less next year even with interest.
How does this reward saving and investment? What will it do to the nest eggs of retired people or young people saving to buy a house up and down this country?