Savings advice is down as a top gift this Christmas

We are closing in on the end of 2017 and those who have to take responsibility for managing their own savings, wealth and pensions need to check what progress, if any, they have made this year, writes Joe Gill. 

Conservative investors must begin with the inflation rate as the key hurdle which has to be exceeded if savings are to make progress in real terms. Inflation is running at a tepid 0.3% so anything above this delivers positive returns.

The next reference point should be risk-free saving rates and these are usually determined by looking at high-quality Government bonds and deposit rates. This year, both of these instruments are delivering interest rates or dividend coupons of less than 1%, so a portfolio beating that return ought not to be an enormous challenge.