NS&I Index-linked bonds

alanwsg

What's the general opinion on these?

I've a couple that are about to mature and I was thinking of just letting them roll over into the next period, partly through laziness.
I have money elsewhere in easy access accounts so I can lock it up for a while without a problem.
I've retired early and am trying to live off my savings until the old pension kicks-in: my investments do earn enough so that I have to pay income tax on the income so the tax-free aspect is of value to me.

RayWolfe

What is your opinion on the future of RPI?
If you think inflation will be higher in the future, there may be a case for letting them roll over.

alanwsg

Hmm ... I don't know: It's not my area of expertise, although it seems so low at the moment that it's difficult to imagine it going anywhere other than up in the long term.
If I wanted to know I'd probably post a question here.
So...
What is your opinion on the future of RPI?

CLAPTON

The question isn't whether inflation will rise as that's a certainty but when... which I don't know but would guess 1 or 2 years time

JoeCrystal

Still worthwhile way to save money, especially if it is five years term. Five years are long time in this world.

[Deleted User]

OP we are in almost the same position ie dh is aged 62 and I am not vesting his pension until 65. We live comfortably on my small pensions plus savings etc. Some of our index linked certs are due to mature oct/nov this year and we are going to let them roll over, knowing that we have peace of mind and can actually cash them in any time in case of emergency. The more tax free income in later years the better

RayWolfe

kittie wrote: »

we are going to let them roll over, knowing that we have peace of mind and can actually cash them in any time in case of emergency.

You make an excellent point here Kitty. As I understand it, you don't even have to keep them for a full year (rollover year) before getting your interest and indexing.

RayWolfe

alanwsg wrote: »

What is your opinion on the future of RPI?

Opinions are VERY cheap, especially hereabouts!
Up.

a7man

Still a good choice for high rate tax payers as part of a wider portfolio.

nrsql

RayWolfe wrote: »

You make an excellent point here Kitty. As I understand it, you don't even have to keep them for a full year (rollover year) before getting your interest and indexing.

There is a difference though.
If RPI is negative at the anniversary you still get the increment.
If you cash in during the year and the RPI + prorata increment is negative you get no interest.
So at the anniversary a negative RPOI is considered 0 but not during the year. It's not much difference for the current certificates though.

RayWolfe

Are you certain? We are talking about the rollover years not the initial 2,3 or 5 years.
I must get out the T&Cs but it's too warm and sunny at the moment.