The sale of high-interest Pensioner Bonds will be extended by another three months.
The Chancellor George Osborne has said that he will extend the application deadline for the market-leading savings products, due to their popularity.
The deadline for bond applications is expected to be moved to 15 May 2015. Initial problems with the application process saw the website crashing and people having trouble getting through on the phone.
An initial limit of £10 billion was set to be collected from older savers, but now the Chancellor has said that another £5 billion worth of bonds will be made available. More than 600,000 over-65s have already arranged Pensioner Bonds, depositing some £7.5 billion.
Mr Osborne said that the offer had been ‘the most successful saving product this country had ever seen’, with 110,000 pensioners signing up in the first two days after they went on sale in January.
Find out more: Income options for your pension under the 2015 rules – learn about this year’s changes
Pensioner Bonds, which offer rates of 2.8% before tax for the one-year deal and 4% before tax for a three-year bond, provide more attractive rates than the best savings products currently on the market.
The best mainstream alternatives on a one-year deal are from the Post Office (1.71%) and the Yorkshire Bank (2.4%) on a three-year deal.
If one person invested the full £10,000 in each Pensioner Bond, they’d get £109 more in interest before tax on the one-year product and £160 more before tax on the three-year deal.
The money you can invest is limited to £10,000 in each bond, making a maximum of £20,000 per person. It should be noted that you cannot take an income from the bond during the course of the term and will collect the interest at the end.
Find out more: How to find the best savings account – make the most of your savings
State pension statement
In further good news for people preparing for their retirement, it has been announced that the free state pension statement service has been extended from the over-60s to everyone aged over 55.
The personalised statements, which were launched in September 2014, give people an estimate of what their state pension will be, based on their National Insurance contributions to date.
Find out more: What’s happening to the state pension in 2016 – we explain the upcoming changes