The government should take advantage of low yields and issue special pension gilts, Ros Altmann has urged.
The former Downing Street pensions adviser said pension scheme members had already lost money following recent interest rate cuts and quantitative easing, such as buying long gilts, could also be counterproductive. In a letter to the FT today, Altmann added: "It would damage pension funds and insurers, which are already struggling with soaring liabilities. Government should in fact take advantage of exceptionally low yields to issue more paper before the gilt "bubble" bursts. Why not issue special pension or annuity gilts? "Hundreds of billions of pounds of long duration, limited price ...
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