The same surge in borrowing costs that is piling pressure on the Government is creating an unexpected windfall for people approaching retirement.
UK gilt yields, the return someone gets from lending money to the government, have climbed to their highest levels in years.
And while this is bad news for the economy – as it means the Treasury has to spend more money servicing debt – for some retirees, the picture is very different.
Shorts
This is because higher long-term bond yields can translate into higher rates on annuities – a fixed income for life that people can buy with their retirement saving pots.
