£ 900

[Jaggs]

As the Coupons on Gilts rise the value of Gilts goes down.
With regard to annuity rates they are still well below inflation so you are guaranteed to lose purchasing power.
Austria sold 100 year bonds in 2020 at a yield of 0.88% which have now lost around 60% of their value, only another 97 years to get your money back on that one.
The UK 10 year Gilt is down 14.23% ytd.

The value on Gilts only goes down as coupons rise if you have to sell them before they reach maturity. A well run pension fund should never be a forced seller as they should be using Gilts to manage the future cash flows that they need to pay out in specific years

[RobertT]

You seem to be accepting that inflation is normal and that its acceptable for your saved Labour to be lost at 2% per annum.
Unfortunately inflation isn't going away anytime soon.
Our economy doesn't produce enough wealth to pay for demands placed upon it.

The current rate of inflation is clearly too high, but a small amount, around 2-3%, is normal.

A zero rate, or even deflation, wouldn't stimulate growth in the economy. It'll cause as much damage as high inflation does.

[milly]

You seem to be accepting that inflation is normal and that its acceptable for your saved Labour to be lost at 2% per annum.
Unfortunately inflation isn't going away anytime soon.
Our economy doesn't produce enough wealth to pay for demands placed upon it.

The current rate of inflation is clearly too high, but a small amount, around 2-3%, is normal.

A zero rate, or even deflation, wouldn't stimulate growth in the economy. It'll cause as much damage as high inflation does.

KEY TAKEAWAYS
Deflation is when the general price levels in a country are falling—as opposed to inflation when prices rise.
Deflation can be caused by an increase in productivity, a decrease in overall demand, or a decrease in the volume of credit in the economy.
Most of the time, deflation is unambiguously a positive trend for the economy, but it can also under certain conditions occur along with a contraction in the economy.
In an economy dominated by debt-fueled asset price bubbles, deflation can lead to a temporary financial crisis and a period of liquidation of speculative investment known as debt deflation.

[RobertT]

You know how to copy and paste! Well Done.

https://www.investopedia.com/articles/p ... conomy.asp

[milly]

You know how to copy and paste! Well Done.

https://www.investopedia.com/articles/p ... conomy.asp

Now, now Robert, it explains deflation very well,
Well that's enough from me on this topic, I wonder who will be correct in the next 18 months, me a humble Postie or those experts at the FT and the BOE.

[renrag40]

You know how to copy and paste! Well Done.

https://www.investopedia.com/articles/p ... conomy.asp

Now, now Robert, it explains deflation very well,
Well that's enough from me on this topic, I wonder who will be correct in the next 18 months, me a humble Postie or those experts at the FT and the BOE.

You could take advantage of the present Gilt rates by setting up a bond ladder.

[milly]

You know how to copy and paste! Well Done.

https://www.investopedia.com/articles/p ... conomy.asp

Now, now Robert, it explains deflation very well,
Well that's enough from me on this topic, I wonder who will be correct in the next 18 months, me a humble Postie or those experts at the FT and the BOE.

You could take advantage of the present Gilt rates by setting up a bond ladder.

I have more than enough money invested in that rubbish via my Royal Mail Pension.

[renrag40]

You know how to copy and paste! Well Done.

https://www.investopedia.com/articles/p ... conomy.asp

Now, now Robert, it explains deflation very well,
Well that's enough from me on this topic, I wonder who will be correct in the next 18 months, me a humble Postie or those experts at the FT and the BOE.

I thought you had finished with this topic?
Obviously not.

[milly]

You know how to copy and paste! Well Done.

https://www.investopedia.com/articles/p ... conomy.asp

Now, now Robert, it explains deflation very well,
Well that's enough from me on this topic, I wonder who will be correct in the next 18 months, me a humble Postie or those experts at the FT and the BOE.

I thought you had finished with this topic?
Obviously not.

Why did you quote me if you didn't want a response?