swanlowpark compare price-inflation, savings-accounts and index-tracker funds using Savings Calculator

Savings Calculator

How well are your savings retaining their value?

Compare inflation with cash-ISAs and stocks-and-shares-ISAs

Price-inflation: CPI, cash-ISA: int%, stocks-and-shares-ISA: FTSE

    • Annual Amt   Start Year   End Year
    •     

Please Correct Amount

   

YearAmount Amount(CPI)CPI Amount(int%)int% Amount(FTSE)FTSE
20065,000  5,000.00   5,000.00   5,000.00  
20070  5,104.99 2.1  5,277.50 5.55  5,228.50 4.57
20080  5,263.25 3.1  5,546.12 5.09  3,624.39 30.68-
20090  5,415.88 2.9  5,668.69 2.21  4,688.88 29.37
20100  5,616.27 3.7  5,827.41 2.80  5,334.07 13.76
20110  5,852.16 4.2  5,987.67 2.75  5,109.50 4.21-
20120  6,010.16 2.7  6,155.32 2.80  5,699.65 11.55
20130  6,130.37 2.0  6,264.27 1.77  6,843.00 20.06
20140  6,161.02 0.5  6,356.98 1.48  6,872.43 0.43
20150  6,173.34 0.2  6,445.98 1.40  6,926.03 0.78
20160  6,272.12 1.6  6,525.27 1.23  8,027.27 15.90

Example
I saved 5000.00 during 2006.
What is the value of those savings at the end of 2016?
Amount=5000, Start year=2006, End year=2006.
Answer: At end 2016 allowing for inflation 6,272
If invested in a savings account: maybe 6,525
If invested in Stock Market: maybe 8,027

Start Year: The calculator increases the amount from the end of Start Year onwards. If I had invested 5,000.00 in January 2006, I should use Start year=2005.

Single Amount: Make Start Year and End Year the same year.

FTSE based on FTSE All-share index-tracker funds

Example - two stock market recessions in ten years

2000-2002 Crash after technology bubble, 2007-2008 Global Financial Crisis
YearAmount Amount(CPI)CPI Amount(int%)int% Amount(FTSE)FTSE
19975,000  5,000.00   5,000.00   5,000.00  
19985,000  10,080.00 1.6  10,316.50 6.33  10,652.50 13.05
19995,000  15,190.88 1.1  15,802.40 4.71  18,150.51 23.45
20000  15,312.40 0.8  16,666.79 5.47  16,943.50 6.65-
20010  15,480.84 1.1  17,440.13 4.64  14,562.94 14.05-
20020  15,744.01 1.7  18,081.93 3.68  11,147.93 23.45-
20030  15,948.69 1.3  18,756.39 3.73  13,389.77 20.11
20040  16,219.81 1.7  19,611.68 4.56  15,008.60 12.09
20050  16,527.99 1.9  20,576.57 4.92  18,203.93 21.29
20060  17,023.83 3.0  21,539.56 4.68  21,116.56 16.00
20070  17,381.33 2.1  22,735.00 5.55  22,081.59 4.57
20080  17,920.15 3.1  23,892.21 5.09  15,306.95 30.68-
20090  18,439.84 2.9  24,420.23 2.21  19,802.61 29.37
20100  19,122.11 3.7  25,104.00 2.80  22,527.45 13.76
20110  19,925.24 4.2  25,794.36 2.75  21,579.04 4.21-
20120  20,463.22 2.7  26,516.60 2.80  24,071.42 11.55
20130  20,872.48 2.0  26,985.95 1.77  28,900.15 20.06
20140  20,976.85 0.5  27,385.34 1.48  29,024.42 0.43
20150  21,018.80 0.2  27,768.73 1.40  29,250.81 0.78
20160  21,355.10 1.6  28,110.29 1.23  33,901.69 15.90

Example
I saved 5000.00 in each of the three years 1997, 1998, 1999.
What is the value of those savings at the end of 2016?
Amount=5000, Start year=1997, End year=1999.
Answer: At end 2016 allowing for inflation 21,355
If invested in a savings account: maybe 28,110
If invested in Stock Market: maybe 33,901

FTSE:
Percentage change column is FTSE All-share total return minus charges-adjustment.
Charges-adjustment covers tracking discrepancies, annual management charges and platform charges.
For years 1986-2014 this charges-adjustment is 0.75%, for 2015 it is 0.20%, for 2016 it is 0.85%
This most closely fits the performance of these UK-index-tracker-fund-ISA's:

Fund Name  Annual
Charge
Legal & General UK Index Trust R Acc 0.56%
Vanguard FTSE UK All Share Index Unit Trust Acc 0.08%
BlackRock UK Equity Tracker Fund Class D Acc 0.06%
Fidelity MoneyBuilder UK Index Fund A Acc 0.30%
HSBC FTSE All Share Index Institutional Accumulation 0.17%
M&G Index Tracker A Acc0.46%

For Vanguard, BlackRock and Fidelity platform charges would also apply; assumed to be 0.25% for 2016.

ISAs: savings-account and FTSE end-of-year amounts are not reduced by tax.

Download spreadsheet equivalent of this calculator SavingsCalculatorToDec2016.xls
Spreadsheet is more flexible than web-page: you can put in different annual amounts.

Tax-free ISA's(Individual Savings Accounts) were introduced in 1999. ISA's were preceded by other tax-free savings - TESSA's (started 1991) and PEP's (started 1986).