A so-called “gilt ladder” lets you line up a series of government bonds to deliver a low-risk pipeline of income in the years ahead.

We’ve spoken to investment experts to find out how gilt ladders work, and what you need to know to build your own.

Gilts explained

Before you start thinking about gilt ladders, it’s important to first understand what gilts – or government bonds – are.

“Gilts are bonds issued by the UK Government to borrow money from investors,” explained Wayne Nutland, senior investment manager at Shackleton Advisers. “In return for lending money to the Government, investors typically receive a fixed rate of interest, known as a coupon and are repaid the bond’s face value…