“This is a hidden time bomb within the pensions industry that is just waiting to blow up” – Adam Walkom, inews.co.uk
Managing partner, Adam Walkom’s views on gilts was quoted on inews.co.uk this week, in an article entitled ‘Pensions time bomb warning as £150bn wiped off the value of gilts – the biggest fall in 30 years’.
Adam Walkom, co-founder at Permanent Wealth Partners said his company had long been concerned about Gilts and other bonds because when interest rates were at zero, there was only one direction of travel possible.
“We have been raising this issue with our clients for months and moved many out of the classic 60/40 portfolio for this very reason. The real issue is still yet to be realised and will be felt by people who have ‘lifestyle’ pensions, which is how the majority of employer pensions are set-up today.
“These pensions automatically ‘derisk’ into gilts and cash as each person approaches their retirement age because, according to the same theory as the 60/40 portfolio, it’s meant to be safer. These people now face significant capital losses on their supposed safer pensions. This is a hidden time bomb within the pensions industry that is just waiting to blow up.”