£100k

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Stevenj214

Original Poster:

4,941 posts

234 months

Friday 8th October 2010
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What sort of safe return could a pensioner expect on £100k, whilst safeguarding it against inflation as much as possible?

sidicks

25,218 posts

227 months

Friday 8th October 2010
quotequote all
Stevenj214 said:
What sort of safe return could a pensioner expect on £100k, whilst safeguarding it against inflation as much as possible?
To my mind 'safe' = 'government bonds'
and safeguard against inflation = inflation yield bonds'

The real yield (i.e. above inflation) on a 20-year index-linked Gilt is around 0.6%

That's a starting point, anyway...
smile
Sidicks

Edited by sidicks on Friday 8th October 16:16

ringram

14,700 posts

254 months

Friday 8th October 2010
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Indexed Gilt ETF's have a yield of around 0.9% if you want a mix of maturities.
Cost of .25 TER so yeah... about 0.6% over inflation.

The economy is a fking mess.