FS Pension Indexed Linked

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  • IanSt
    IanSt Posts: 366 Forumite
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    pacemaker1000 wrote: »
    Wow gets half
    Really can’t see interest rates raising to more than 1% or the country would be screwed. Mortgage would default, banks fold and blood on the streets...lol
    This should keep cpi in check imho

    I'm not sure that I'd agree that low interest rates is what has been keeping inflation low or that inflation at the moment could be called low (if anything it's been artificially boosting asset prices for the last umpteen years). If I had that option then I personally would be inclined to tend towards a means of guaranteed inflation proofing.
  • pip895
    pip895 Posts: 1,178 Forumite
    First Anniversary First Post Combo Breaker
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    My DB pension has a guaranteed uplift of 5% pa - I wold actually prefer it to be RPI/CPI linked as I worry about inflation - a few years of low inflation and people seem to forget what it was like!
  • pacemaker1000
    pacemaker1000 Posts: 59 Forumite
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    pip895 wrote: »
    My DB pension has a guaranteed uplift of 5% pa - I wold actually prefer it to be RPI/CPI linked as I worry about inflation - a few years of low inflation and people seem to forget what it was like!

    Wow! Great if you’ve been drawing it the last five years.
    It least I’d still have 66% linked
  • GunJack
    GunJack Posts: 11,673 Forumite
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    Why would you want to burn all the capital by the state pension kicks in?
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • pacemaker1000
    pacemaker1000 Posts: 59 Forumite
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    GunJack wrote: »
    Why would you want to burn all the capital by the state pension kicks in?

    To live off!
    I look at the lump sum as part and parcel of my whole life’s benefits.
    Luckily have other assets

    Just worked out CPI for the last 11 years averages 2.36%
    As option 1 only gives me 4700 index linked more and as I get 6k more cash if I invest this in a bond currently 2.46% wouldn’t they balance out? Not forgetting the initial 1k a year more?
    Or am I working this out all wrong
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    pacemaker1000 wrote: »
    Wow gets half
    Really can’t see interest rates raising to more than 1% or the country would be screwed. Mortgage would default, banks fold and blood on the streets...lol
    This should keep cpi in check imho

    Conventional macroeconomics would disagree; it says that the way to hold inflation down is to increase interest rates. That worked for Volcker in the US decades ago.

    Unfortunately macroeconomics is probably largely a heap of rubbish; but it still might be right on this.
    Free the dunston one next time too.
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