Bitter taste: DC default savers left nursing heavy losses

Long-lasting effects of rising bond yields for pension savers

clock • 4 min read

Trussonomics is back, writes Laith Khalaf. And so are higher bond yields...

It is purely by coincidence that long-dated bond yields were spiking again, just as Liz Truss stood up to speak at the Conservative Party conference. While she implored her audience to help Make Britain Grow Again, the yield on the 30-year gilt was climbing to its highest level since the Mini Budget last year. This is a fairly esoteric instrument, the lofty preserve of insurance company actuaries and pension fund managers, and it won't make too many headlines. That's especially the case because the ascent of long-dated bond yields has been gradual this time around, allowing the market...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Pensions

How blockchain can bring real-world benefits to pensions

How blockchain can bring real-world benefits to pensions

But how many firms will use it to their advantage?

Adrian Boulding & Ihab El-Saie
clock 07 December 2023 • 7 min read
Gilt pressure sees DB transfer take-up levels hit 'all time low'

Gilt pressure sees DB transfer take-up levels hit 'all time low'

Average transfer values at the second lowest level since 2015

Jasmine Urquhart
clock 05 December 2023 • 1 min read
OECD urges reform of 'costly' state pension triple lock

OECD urges reform of 'costly' state pension triple lock

State pension change would ease eroded ‘fiscal headroom’

Jenna Brown
clock 30 November 2023 • 2 min read