Funds and ETFs are easy to hold in a Sipp or Isa. But if the investment is outside of a tax wrapper, index-linked gilts are exempt from capital gains tax, so immune to the higher rates of CGT announced in the Budget.
How much inflation protection to buy will depend upon individual needs and circumstances, but a useful rule of thumb is that between 10 per cent and 20 per cent of a pension pot should be inflation-protected by being held in assets with performance strongly correlated to inflation.
Percentage wise probably an allocation somewhere in the teens will be about right.
There’ll be plenty of clients wondering about what the Budget announcements mean for them so lots of opportunities for advisers to demonstrate the value they provide.
Adrian Boulding is director of retirement strategy at Dunstan Thomas
