To put that in perspective, let’s assume that you have £1,000 at age 35 to put somewhere. Let’s also assume that your savings account returns 3% on average, and that you can get 8% returns, net of inflation, over the long term in your investments. Now watch this. If you just dropped that money into a savings account, what would it be worth thirty years later? While that £1,000 would have grown to £2,427 on paper, inflation would have also “dragged” your returns down. So while it appears you did well, when you factor in inflation your money has the same purchasing power as it did thirty years
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