The paper proposes a new savings product called Personal Care Savings Bonds (PCSBs), which are designed to encourage saving for social care by providing extra money at the time of greatest financial need. PCSBs are likely to be attractive to older people who have only a basic pension and modest savings, but also to other age groups, as they not only attract interest but also pay prizes. Based on reasonable assumptions, the paper shows how the fund could build into a substantial investment worth £70 billion with regular monthly prize pay-outs. In concept they are somewhat similar to Premium Bonds, another U.K. personal savings product that has been successfully operating since 1956.
The paper is peer reviewed and just been published by the Geneva Association and available on open access via this link: http://www.palgrave-journals.com/gpp/journal/v39/n4/pdf/gpp201430a.pdf
Happy to discuss should you require further information or background to this work.
Professor Les Mayhew, Cass Business School, Faculty of Actuarial Science and Insurance
tel: 0208 943 4110