The New Pensioner Bond Explained
Come January 2015, a new Pensioner Bond is set to be launched by the government, issued by National Savings and Investments, that will be accessible to everyone aged sixty-five and over.
The new Pensioner Bond has been designed to help out the many pensioners across the country who have seen their incomes fall dramatically as an unintended consequence of the continued low-interest rates enforced over the last few years, in a bid to support the economy.
Though Chancellor of the Exchequer George Osborne noted that the new Pensioner Bond will pay market-leading rates, the exact figures are to be set in the autumn in order to ensure they can secure the best possible rates for pensioners who wish to participate; though Mr Osborne noted during the earlier Budget 2014 that “…our assumption is 2.8% for a one year bond and 4% on a three-year bond — that’s much better than anything equivalent in the market today.”
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