Tory sovereign debt plan tackles life expectancy rise

The Conservatives are formulating a new form of sovereign debt, which under their government would b...

The Conservatives are formulating a new form of sovereign debt, which under their government would be aimed at helping company pension and annuity providers cope with increasing life expectancy. Shadow Works and Pensions Secretary David Willetts is consulting financial services companies about the issuing of a government bond with an interest rate coupon based on the Government Actuary's forecast for life expectancy. If longevity moved by more than 5% or 10% the interest payments would go up or down as appropriate. Willetts said: "This would mean that if, for example, dramatic advances i...