The Bank of England’s recent announcement that interest rates are to be kept low for a few more years is another real kick in the teeth for savers, who have lost out on billions since the UK base rate was dropped to 0.5 per cent back in 2009.

These rock-bottom rates have dealt Britain’s savers a devastating andharsh blow.  Hit especially hard are, of course, retirees and people living off their capital.  Not only do they have less disposable income, but their long-term financial objectives will absolutely ultimately suffer.

With the return for saving almost zero, the pain seems to be endless with no rainbow in sight.

Many experts are saying that rates could remain low until around 2017 – so, practically a decade of misery for savers!  Even if interest rates do increase ‘late next year,’ as the Bank of England has hinted, the changes will be “gradual”.

Of the potential rise, deVere Group’s international investment strategist, Tom Elliott, says: “I’m pencilling a rate rise in the fourth quarter of this year, and then a few more next year to take base rates to around 1.5 per cent.

As long as interest rates remain low, it’s important to stress that holding amounts of non-emergency cash in the bank is not sound advice.  There are alternatives available to having to keep significant quantities of cash.  For example, deVere’s income producing structured products are going from strength to strength this year.

In addition five autocallable notes have already matured for deVere clients in the 1st 2 month of the year, which was fantastic news for the investors.  The program focuses on notes with early maturity dates andstrong returns, which will potentially increase a client’s wealth portfolio more quickly and at a much better rate than cash-only savings.  A total of 26 autocallable notes matured for deVere clients in 2013 alone.

In order to keep your retirement plans on track and make the most out of your savings, I believe that a higher risk outlook could be the way forward for many people that seek real returns.

There has always been a tendency to avoid risk as we get older, but with the interest rate environment being how it is currently, and is predicted to be for years to come, it’s essential to consider all the available options in order to fulfil long-term ambitions, such as being financially secure throughout your retirement.

As an expat expert, I am on hand to help with all of the above and more.

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Mike Coady is an award-winning financial expert and a well-known leader in the financial industry.

Having taken two of his previous firms to Chartered Status in the UK and also achieved the prestigious National IFA of the Year Award – Highly Commended.

Mike is qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), and a Fellow of the Institute of Directors (FIoD).

Blog published by Mike Coady