Are fixed income fears being inflated?
‘BoE may have no choice but to raise rates, which could be bad for the bond market in the short term’
Inflation
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UK retirees to get ‘third biggest increase’ in state pension
But 3.1% uplift in the 2022-23 financial year ‘may fall short’ of cost of living rises
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Pound in your pocket just got lighter
After inflation hits record 3.2% in August
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Can the US still deliver meaningful returns?
Rising inflation and interest rates are keeping investors on the fence
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Real assets can offer protection against high inflation
They have a history of ‘helping portfolios’ when markets are ‘challenging for stocks and bonds’
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What will higher inflation and bond yields mean for equities?
There are two potential spanners that could be thrown into the works
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How have markets fared one year on from lockdown?
‘Government bonds, in theory a port in a storm, have provided no shelter’
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How advisers can inflation-proof retirement pots
It is the ‘forgotten risk’ for savers and can have ‘devastating impact’ on pensions
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We are not out of the inflation woods yet
But ‘incorporating a hedging asset is no free lunch, as it may increase a portfolio’s risk profile’
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Do government bonds offer the same level of protection?
‘Now more than ever, investors must focus on diversification’
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UK pensions lifetime allowance set to increase by 0.5%
And government expected to keep triple lock promise with 2.5% rise in 2021/22
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UK government plans to reform RPI could cost savers £122bn
People with life insurance, pension policyholders and DB scheme members will be most affected