Build a gilt ladder
How this ladder is built
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A rung is one year's income, funded by one gilt whose redemption lands in that year. The ladder buys each rung at its mid dirty price — clean plus accrued, per £100 nominal — from the report named in the Allocation card's caption, so the quantity is what that money actually buys rather than a round £100 of face value.
Income mode solves for the lump sum a target annual income needs, growing that target by the inflation rate you set so each year's draw keeps its buying power. Lump sum mode runs the same ladder the other way: a given amount, and the income it supports.
Coupons add income as they arrive and are not reinvested in the model, so a rung's year receives its gilts' coupons plus, in the year it matures, that gilt's redemption — the principal that funds the rung. Cash flows, in today's money deflates every future payment at the inflation rate you chose, treating the ladder's first year as today.
The tax rate is applied to coupon income; gilts are exempt from capital gains tax, so the redemption is not netted.
Invest £47,337 today to draw £10k of inflation-adjusted income a year for 5 years. Coupons add extra income as they arrive.
Allocation
prices are mid dirty prices per £100 nominal from the 30 Oct 2026 report| Gilt | Dirty price | Allocation | Amount | Quantity |
|---|---|---|---|---|
|
1¼% Treasury Gilt 2027 TG27 · GB00BDRHNP05 |
£98.277 | 20.76% | £9827.67 | 10000.00 |
|
1 5/8% Treasury Gilt 2028 TG28 · GB00BFX0ZL78 |
£94.313 | 20.52% | £9714.24 | 10300.00 |
|
0 7/8% Treasury Gilt 2029 TR29 · GB00BJMHB534 |
£89.321 | 20.02% | £9476.10 | 10609.00 |
|
0 3/8% Treasury Gilt 2030 TG30 · GB00BL68HH02 |
£84.253 | 19.45% | £9206.60 | 10927.27 |
|
0¼% Treasury Gilt 2031 TG31 · GB00BMGR2809 |
£80.960 | 19.25% | £9112.14 | 11255.09 |
| Total | 100.00% | £47336.75 | 53091.36 | |
Cash flows, as paid
one horizontal bar per year: each gilt's coupon and its redemption stacked, nominal £Each year's horizontal bar stacks every gilt that pays in that year: each segment is one gilt's coupon income and, in the year it matures, its redemption — the principal that funds that year's inflation-uplifted income draw. All amounts are nominal pounds.
Cash flows, in today's money
deflated at the chosen 3% a year inflation rateEvery bar is what that year's payments are worth today. The ladder's first year is treated as today's money.