Changing the route guidance

Inflation may be low at present, but with sterling taking a battering, it is likely to balloon - bad news for those with level annuities

During the past 25 years - which is pretty much most of the working life of the majority of advisers out there - we have enjoyed a period of low interest rates and inflation and while the very short-term prognosis is also pretty benign, one thing to be concerned about looking further ahead is the return of inflation. The Government has embarked upon an unprecedented level of borrowing in order to bail out the banks and financial institutions in an attempt to get the economy moving again. These increased levels of borrowing have already impacted on sterling as the markets have given their ...