NAPF comments on new 100-year bonds | Pensions and Lifetime Savings Association

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NAPF comments on new 100-year bonds

14 March 2012

The National Association of Pension Funds (NAPF) commented on reports today that the Government is considering issuing bonds with a 100-year repayment date.

Joanne Segars, NAPF Chief Executive, said:

“A 100-year bond would be too long for most pension funds, and we don’t think that many would buy them. Most final salary pension schemes are now closed to new joiners and are becoming more mature. Their liabilities are long-term, but not that long-term.

“Pension funds are looking for 30, 40 and 50-year index-linked debt, and would much rather the Government issue more of those. Even if a 100-year bond were attractive in duration, there would be a question mark over whether it would yield a strong enough return for investors.”

 

Note to editors:

The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion.

Contact: Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]