Pensioner bond rates cut by half

Carmen Reichman
clock

Interest rates on government bonds for the over-65s have been cut by half for those who want to renew them.

The bonds initially offered market-beating rates of 2.8% for the one-year product but will offer only 1.45% after it is renewed. Bonds were open from 15 January this year until 15 May, so the first maturities will be in the coming month. Sole distributer of the products National Savings & Investments (NS&I) wrote to the first holders 30 days before the maturity of their products. NS&I initially offered 4% for its three-year pensioner bond but will now offer those wanting to switch to the longer-term product 1.9%. The bonds were originally announced by Chancellor George Osborne in h...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

QROPS in a post-LTA world: Everything advisers need to know

QROPS in a post-LTA world: Everything advisers need to know

So, what next for QROPS?

Lisa Webster
clock 15 May 2025 • 3 min read
Pension providers reaction to the Mansion House Accord

Pension providers reaction to the Mansion House Accord

Signatories point to improved outcomes for members

Jonathan Stapleton
clock 14 May 2025 • 12 min read
'Please change your language': Unengaged savers turned off by pensions speak

'Please change your language': Unengaged savers turned off by pensions speak

‘They want to know – just not in the way you are selling it’

Jenna Brown
clock 13 May 2025 • 3 min read