Government Bonds.

Anyone know much about the government pensioner bonds?
Has anyone bought any?

Re: Government Bonds.

Do you mean the 'Pensioner bonds' ?
I'd like to, but I'm still too young (even if I don't feel it). The main thing to note now is that unless you've got a lot of other savings, the proposed exemption on tax for the first £1000 of savings interest will make the bonds effectively tax free.

Re: Government Bonds.

I was reading today that you'ld need at least £70,000 in savings to take advantage of the full £1,000 of tax-free interest.

Re: Government Bonds.

Yes we bought some better interest hopefully over max time period. it is only allowing £10,000 per person though but two can do a joint one fo £20.000 if in a legal partnership, ie married for example

Re: Government Bonds.

Alan, as things stand, you're probably right about the amount of interest you can earn. Not like the 'good old days' when you could get 5% - 7% interest and we could make several £k a year from our savings. We've got FTSE linked guaranteed bonds maturing soon that should return 50% tax free over 6 years. I don't think we could do that now with the FTSE at near record levels.

The 1 year pensioner bonds at 2.8% will yield £280 from £10k. Pity it's limited to 10k.

Re: Government Bonds.

Were I old enough I would buy some. A far higher return than from Building Societies.

There are ways of earning much more but that would involve going into the financial market, not to be advised unless you can afford the risks.

Re: Government Bonds.

I would never buy any Government bonds again having been stung
a few years ago.
I am not proud to say that a £5k Government bond of the day I bought with my retirement money in 2007 was for a 5 year period. In 2012 when it matured the interest I got was £35.79. I will just repeat that again £35.79
I had to look at the paper work at least 200 times to believe my bad
luck. What is so annoying was I could have put it in a Isa at 8per cent
for 5 years. So I would read what the small writing says.

Re: Government Bonds.

That was exceptionally bad luck. I took out a £10k FTSE linked bond a some years earlier and it returned 57% interest (£5700) over 5 years, however the timing of these bonds critical to the return the achieve.

I've also taken out fixed rate ISAs at 7%, but by the time they matured, the best rate was about 2%.

Re: Government Bonds.

Pensions will, imo, be the next "Endowment" type scandal and "PPI" scandal soon enough. ALL schemes that require you to put lots of money in up front and over many many years are crooked and designed to take money off you. Pensions are simply the transfer of YOUR money to someone else to INVEST supposedly on your behalf. Common sense should tell us that where money is concerned people only work for themselves. Hence lots of money IS being made from the investment of YOUR money but YOU won't see much (if any) of it. You would be better investing it yourself (and learning how to do that) and thus keeping the rewards for yourself. There is and has been a pension crisis for a long time. There isn't the money to pay out. The powers that be will therefore find "legal" ways to reduce the amount you should be entitled to. Much will be simply blamed away on the unfortunate "Global Financial Crisis". Excuses like "sorry peeps, but times were bad and all pensions lost money ok? there there don't worry cos everyone is in the same boat"

It's a scam. They HAVE been making money from your money and keeping it for themselves and they always will. That's what they are in business to do. If you are relying on someone else to look after your future prosperity and wealth then be prepared to be disappointed. Take control yourself. Transfer your pension into a private SIPP, learn how to invest and give yourself a chance. If I had my time again I would never join a pension scheme at work. When I was younger it was pretty much compulsory and expected. Social conditioning at work.

Re: Government Bonds.

I gather you don't want any government pensioner bonds then ...?