Good afternoon and welcome to The 99: the home of financial news and insights made simple. You can count on accessible, trustworthy, and unbiased news insights every Monday.

This week, you’ll find your usual round-up of must-know financial stories, plus:

• Let’s unpack..premium bonds - Are premium bonds worth it in 2025?

• Microretirements - How to take an extended break from work

There’s plenty more coming your way—expect more content and tools this January to help you get organised and build a great financial life in 2025.

As always, if you have any feedback, questions or content requests, just reply to this email. We would love to hear from you.

Alice & the GFY team x

UK Long term Gilts Soar to Highest levels since 2008 

🤔 What are Gilts?

• A gilt is a bond issued by the UK government to raise money to finance public spending and is purchased by investors.

• Essentially, you loan money to the government and receive interest payments called a ‘yield’.

• They are considered low-risk and safe investments because the government is unlikely to default on them. i.e., the government has never failed to pay the interest due on its bonds.

🔍 Why are they going up?

• Rising inflation in the UK, hence, fewer interest rate cuts, keeping the yields high.

• The UK economy is also not growing (No growth in GDP was recorded in Q3 2024) which could mean more borrowing in future.

• The government’s new spending plans and higher borrowing have made UK bonds less attractive & raising doubts about how the country will manage its finances.

• Gilt yields are also affected by rising borrowing costs worldwide, but the sharp rise in UK yields and a falling pound suggest some investors are losing confidence in the UK compared to other countries.

✍️ What is the impact?

• Higher mortgage rates for prospective or new buyers, as lenders source funding for the loans from the market. For those already on an existing fixed or variable rate, no change is expected.

• Lower and favourable annuity prices for retirees looking to purchase an annuity*

• Higher costs for the government, as they pay more in interest, leaving less money to spend or implement projects which may result in spending cuts, tax rises or more borrowing to fund these additional costs.

🔊 What is the government’s response?

*Annuity -  A pension annuity is a product that converts your pension pot into guaranteed regular income for the rest of your life.

**Spring Forecast - Economic and Fiscal Forecast/Update from the Office for Budget Responsibility (OBR) scheduled for Mar 26.

🚨 A Reminder: What Are Premium Bonds?

🫡 Premium Bonds are government-backed savings accounts from National Savings & Investment (NS&I), meaning your entire investment is 100% protected.

✅ They are the most popular savings account in the UK, with £126 billion saved with them.

🏆 But instead of earning regular interest, you enter a monthly prize draw where you could win anywhere from £25 to £1 million—all tax-free. Each bond has a unique number that is entered into a monthly raffle for cash prizes worth:

• £25

• £50

• £100

• £500

• £1,000

• £5,000

• £10,000

• £25,000

• £50,000

• £100,000

• £1 million

There are two winners of £1 million each month. The exact number of smaller prizes varies monthly.

🏧 You can withdraw anytime with no penalty, making it a super flexible savings option.

Recent Cuts in Prize Rates

Prize rate = the average % return offered

Why Is This Happening?

NS&I attributes the cuts to a “changing savings market”….

Are they worth it?

Critics point out that cash savings accounts often offer higher interest rates, which is accurate, with the best easy-access account currently offering just under 5%.

However, the excitement of having the chance to win a life-changing amount of money each month, while keeping your capital secure, is a key reason why Premium Bonds remain so popular.

They can also be useful for higher earners who might have already made the most of their ISA allowance and Personal Savings Allowance are looking for effective ways to save without paying more tax (Premium Bond prizes are tax-free).

TLDR: They aren’t a good way to grow wealth in the longer term but they are more fun that your average savings account and useful for anyone after an easy-access savings method or high-earning people who are making the most of other saving allowances.

Comments & Insights

The UK’s pet population has soared since the pandemic, peaking in 2022 with an estimated 62% of UK households having one.

We’re now second only to Germany when it comes to dog ownership in Europe.

With rising prices for everything—from food to daycare to pet insurance - pet owners are feeling the pinch more than ever.

Average cost of owning a pet over their lifetime in the UK according to Unbiased:

Go Compare estimates the average annual pet insurance premium in the UK costs between £325 and £419 a year, pet food can cost between £200-£400 a year and vet bills can hit the thousands – it's a huge financial commitment.

Pet tech to the rescue?

Pet care is estimated to be worth an annual $320bn worldwide and is expected to grow to a $500bn market by 2030.

It’s also pretty resilient against economic headwinds, with spending on pets increasing rather than shrinking during both the 2001 and 2008 recessions.

Pet tech is an emerging trend that looks to capitalise on owners’ desire for convenience and cost savings. The industry is booming in the US, with some products that sound genuinely useful, and a few that might be a little OTT...

Other ways to save:

If you’re not quite ready to splurge $600 on a dog dryer, here are some simpler ways to keep costs in check:

●     Keep your pet healthy: It’s obvious but the more you look after your pet’s diet, weight, teeth and exercise, the less likely you are to visit a vet.

●     Spay or neuter your pet: Neutering or spaying your pet can mean they’re less likely to wander, become aggressive or develop certain health conditions.

●     Opt for a higher excess: If you can afford to pay a higher excess in the event of a claim, this could help keep your pet insurance costs down.

●  Compare policies: Always compare pet insurance prices and never accept the first quote you are given.

The Traitors: Prize money, appearance fees + more

With 5.1 million viewers tuning into Season 3 Episode 1, the BBC's hit game show The Traitors has captivated viewers but how much prize money is actually on offer? Let’s break it down by season and explore how contestants are compensated.

Season 1

In 2022, The Traitors crowned its first winners: comedian Hannah Byczkowski, call centre agent Meryl Williams, and property agent Aaron Evans. The trio shared a prize pot of £101,050.

Season 2

Brought another thrilling finale, with British Army engineer Harry Clarke emerging as the sole winner. Harry, then 23 and from Slough, Berkshire, walked away with £95,150. Harry used his winnings to help family members with debts and treat them to a holiday.

Season 3

What is the Maximum Prize? The maximum prize pool for The Traitors is £120,000, the highest amount possible if contestants excel in all tasks. However, the final amount is determined by the group's performance in the challenges throughout the series.

💷 Do Contestants Get Paid for Taking Part?

Contestants on The Traitors do not receive an appearance fee. However, they are given a daily allowance to compensate for lost income during filming.

Aaron Evans, the winner of season one, said: "They don't technically pay you, they subsidise what you would have got for work with the show, it's roughly like £100 a day.”

Microretirement

How to take an extended break from work

Microretirement vs. Sabbatical: What's the Difference?

A microretirement is a planned, extended break from work to focus on personal growth, passions, travel, or rest, typically taken while still in the middle of one’s career. Unlike traditional retirement, micro retirements occur at various points in life rather than at the end of a career. They are designed to help individuals avoid burnout, recalibrate priorities, or pursue goals they might otherwise delay until their 60s or beyond.

A sabbatical, on the other hand, is an extended leave granted by an employer, usually for professional development or personal enrichment. While sabbaticals are often part of formal workplace policies, microretirements require individuals to save money and make deliberate career or lifestyle changes to accommodate the break.

Key Difference: Sabbaticals are typically employer-supported and may offer job security, while microretirements are self-funded and require leaving or pausing employment entirely.

Reasons to Microretire

1. Avoiding Burnout: Prolonged stress can lead to physical and emotional exhaustion, making a career break an essential reset.

2. Pursuing Passions: Whether it’s travelling, starting a creative project, or learning a new skill.

3. Exploring New Careers: Microretirements provide space to explore different industries, hobbies, or business ideas without the pressure of a full-time role.

4. Reevaluating Priorities: Time away from work helps individuals reflect on their career trajectory and personal goals.

How to Take One?

1. Plan Financially: This is key. You need to save enough to cover living expenses during your break - be realistic. Consider stripping back non-essential costs or moving to a more affordable location (e.g. with family or into a houseshare). You might also explore passive income opportunities, such as renting out a room or garage. Be strategic about maximising your income before you quit e.g. accruing paid leave and waiting until you’ve been paid bonuses due.

2. Set Goals: Define what you want to achieve during your micro retirement and use your financial plan to figure out how long you can realistically micro retire for.

3. Talk to Your Employer: A sabbatical gives you the security of having a job to come back to so it’s worth exploring your options for sabbaticals or unpaid leave. If this isn’t possible, prepare to leave your role. You may also want to consider if voluntary redundancy is an option at your current workplace.

4. Prepare for Reentry Before You Exit: Plan how you’ll explain the break to future employers, highlighting the skills or insights gained. In an ideal world, have a job lined up that you’ll come back to but if this isn’t possible, make sure to engage with your network before going away and seek advice from a career expert or mentor (if you can’t afford this, it’s worth sharing your experience in the GFY community forum - there’s always someone who can help). Be aware that finding a job can take months so you may want to start the application process before you leave. Make sure to bake any period of unemployment into your financial plan - What is the worst-case scenario, and how much will you need to get by?

Alternatives to Microretirement

Microretirement isn’t without financial risk, so if you do the sums and figure out that it’s not workable, here are some alternatives:

1. Find a Role with Sabbaticals and Remote Working Options

If you aren’t seriously burnt out then a longer-term and more sustainable approach might be finding a company that can offer you more variety, adventure and balance without having to quit. Many companies in the UK provide sabbatical policies for long-term employees or the ability to work from abroad for a certain amount of weeks of the year.

“Quiet quitting” involves setting clear boundaries at work without overextending yourself. Use this time to job hunt for roles that emphasise:

• Remote or hybrid working

• Flexible hours

• Generous holiday policies

2. Relocate for a Better Life

If you need a change, consider relocating to European countries where work-life balance is prioritised. Many European companies shut down for extended summer breaks in July and August, offering employees significant time off to recharge.

4. Take Time to Retrain

Or perhaps you’re just in the wrong kind of role altogether. Invest in education to pivot your career. Use online courses, bootcamps, or university programs to acquire skills in high-demand fields such as technology, healthcare, or sustainability.

Popular platforms:

• Coursera

• Udemy

• FutureLearn

• Open University

Have you considered taking a break? Want the perspective of someone who’s been there? Drop a question in the GFY community forum.

Sources/Read More:

UK Long term Gilts Soar to Highest levels since 2008

• Gilt yields soar to highest level since 2008: Live updates as US jobs report lands
  Moneyweek

• Financial Times: Why are UK government bond yields rising?
  Financial Times

• Government Bond Turmoil: What It Means

  Morning Star

• Why are UK borrowing costs rising and what does it mean for me?
  BBC

• What the bond market turmoil means for your mortgage, pension and savings
  Guardian Business

• How will bond market turmoil impact mortgages, pensions and interest rates?
  Financial Reporter

• Types and How to Invest
  Investopedia

The rising cost of pet parenthood: can tech ease the burden?

• The Rising Cost of Pet Ownership
  Financial Times,

• Ways to Save Money on Pet Insurance
  Which?

• Record Numbers Take Out Pet Insurance for Their Four-Legged Friends
  Association of British Insurers

• The Cost of Pet Insurance in the UK 
  GoCompare

• Estimated Pet Ownership in the United Kingdom 
  Statista

• The Real Cost of Pet Ownership 
  Unbiased

The Traitors: Prize money, appearance fees + more

• BAFTA, Traitors, Harry Clark, and Money 

  The Independent

• Who Won The Traitors? Full List of Winners and Prizes 

  The National