The fiscal bravery of the unfunded tax cuts inevitably sent gilt prices tumbling. This has a significant impact on pensions savings.
The UK mini budget on Sept. 23 has postponed retirement for millions. It grabbed headlines by cutting personal tax burdens but less has been said about the impact on pension savings. Gilts were already easing ahead of the budget, as the chart shows. The challenge for would-be pensioners and their fund managers now is how to recover.
Year-to-Date 32% Fall in Gilts Value
The reason collapsing gilt prices matter is that the Office of National Statistics (ONS) tells us that 20% of all UK ...