The Lemon Fool

FT: inflation-protected: comments re ILSCs

FT: Stuart Kirk: "Boy or man, I’m into inflation-protected bonds"
https://www.ft.com/content/4674ada4-0781-48d0-8c87-56a80c4a53bf
via Google: https://www.google.co.uk/search?q=site%3Aft.com+inflation-protected
via http://archive.today/2023.03.10-050341/https://www.ft.com/content/4674ada4-0781-48d0-8c87-56a80c4a53bf (does not have comments)

Comments on this FT article by commenter 'spun' appeared in today's (Sat 18 March 2023) FT about NS&I Index-linked Savings certificates (ILSC) which may be of interest to readers here on TLF. Here's the first comment by Spun: follow-on comments available in urls above


Out of curiosity, I've just checked my records (as far back as they go) and the 5th issue of ILSC (1991) paid 4.5%+RPI: go figure ....

yorkshirelad1 wrote:FT: inflation-protected: comments re ILSCs

FT: Stuart Kirk: "Boy or man, I’m into inflation-protected bonds"
https://www.ft.com/content/4674ada4-0781-48d0-8c87-56a80c4a53bf
via Google: https://www.google.co.uk/search?q=site%3Aft.com+inflation-protected
via http://archive.today/2023.03.10-050341/https://www.ft.com/content/4674ada4-0781-48d0-8c87-56a80c4a53bf (does not have comments)

Comments on this FT article by commenter 'spun' appeared in today's (Sat 18 March 2023) FT about NS&I Index-linked Savings certificates (ILSC) which may be of interest to readers here on TLF. Here's the first comment by Spun: follow-on comments available in urls above


Out of curiosity, I've just checked my records (as far back as they go) and the 5th issue of ILSC (1991) paid 4.5%+RPI: go figure ....

Wow, hard to believe these days! Mine were RPI +0.5% when I first got some, over 10 years ago.

Then RPI + 0.01%

Now they're at CPI +0.01%


Steve

I have held these for over 25 years. Sold some over the years but still have quite a few. It was the best advice I ever got when I was setting up my asset allocation plan not long after I retired.

A bit like the generous State Pension which is about to increase by 10.1%.

These increases are sobering and show just how inflation is eating into everything if, like most of us here I assume, we are relatively asset rich.

Dod

They were wonderful.

But can even they compete with the marvel of buying extra state retirement pension by using self-employed NICs when you happen to have only a modest self-employed income?

Or, with the old-style state pension, buying more by deferring taking if for two our three years? Or even by purchasing Class 3A NICs?

There must have been some cunning foxes who managed to combine two or three of those stunts.

Deferrals were a case of the mispricing that can arise with a sudden drop in interest rates. Our recent sudden rise in interest rates may mean that the deferral terms for the new-style state pension are mispriced.

I have old (renewed) ILSCs, I bought more state pension and I deferred taking the state pension for a number of years … I viewed these issues as bit players to my portfolios but inflation has rather changed my perspective. The inflation proofed elements of my income and my wealth are looking powerful.

Best wishes, Steve

Kantwebefriends wrote:They were wonderful.

But can even they compete with the marvel of buying extra state retirement pension by using self-employed NICs when you happen to have only a modest self-employed income?

Or, with the old-style state pension, buying more by deferring taking if for two our three years? Or even by purchasing Class 3A NICs?

There must have been some cunning foxes who managed to combine two or three of those stunts.

Deferrals were a case of the mispricing that can arise with a sudden drop in interest rates. Our recent sudden rise in interest rates may mean that the deferral terms for the new-style state pension are mispriced.

Doesn't matter, it's impossible to defer a state pension that's in payment.

CliffEdge wrote:

Kantwebefriends wrote:Doesn't matter, it's impossible to defer a state pension that's in payment.

Then they must have changed the rules. It was certainly possible with the old-style pensions.

What is your evidence that it's now impossible?

Kantwebefriends wrote:

CliffEdge wrote:

Then they must have changed the rules. It was certainly possible with the old-style pensions.

What is your evidence that it's now impossible?

It's a long story but have a look on gov.uk and see if you can defer on there. Then try phoning the DWP and see if you can contact anyone on there who could do it for you.
If you really want to know that is. Let us know how you get on.
Please.