Pensioner Bond 2015

Published / Last Updated on 07/11/2014

Pensioner Bond 2015Video looks at the new Pensioner Bond 2015, rates published December 2014, available January 2015 and likelihood of over subscription. Plan now.

Go to NS&I website:


“Hello there: pensioner bonds.

In the Budget of March 2014 Chancellor George Osborne announced that NS&I (National Savings and Investments) which, is effectively government-owned, will be reintroducing the pensioner bond. Now as you can see, I have the lights on and everything else, It’s dark nights now we. We are now into December, today is the [laughs at error] third of 3rd of November. I should say it’s 3rd November 2014 and the actual rates for these new pension bonds will be announced in one month’s time on 3rd December 2014 with new pensioner bonds being available in January 2015.

The reason for me raising this video is plain and simple. Back in March, the Chancellor suggested that a

  1. One-year bond would pay 2.8% and the
  2. Three-year pensioner bond would pay 4% pa interest.

2.8% for a one-year bond 4% for a three-year bond, now we don't know that those rates are definitely what will be announced in December, in a month’s time but clearly these are much higher rates than you can get in bank and building society fixed term deposits at the moment.

So [public] interest is starting to build and we believe there is going to be a stampede for pensioner bonds when they become available in January 2015.

Already, we've seen figures that literally on a daily basis more and more people are registering on the NS&I website to receive their newsletter so that they get the link so that they can start to look at their investment plans and think about these pensioner bonds.

So basic rules:

  • Pensioner bond available for people over the age of 65
  • The maximum you can invest is £10,000 into a one-year bond and £10,000 into the three-year bond
  • So the maximum you can invest is £20,000

Now the government have suggested that they are then looking to issue no more than £10 billion worth of pensioner bonds. So doing the basic numbers:

  • £10 billion of pension bonds
  • Maximum you can invest is 20,000
  • There will be no more than 0.5 million subscriptions for those bonds [if all invest £20,000]

So just be aware they could be restricted to 0.5 million people and at rates, if they are 2.8% for a one-year bond and 4% for the three-year bond, they are going to get snapped up very quickly. [So] Certainly, the guidance from this end from us, your favourite financial advisers I hope, is if you’re thinking about pensioner bonds and you’re the over the age of 65: YOU NEED TO START PLANNNING NOW.

Deadlines are fast approaching. Rates will be announced in one month’s time December 2014 and then they go live in January 2015 . That's an introduction to pension bonds or the new pension bond, I should say. Thanks very much for watching.”

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