New pension freedoms see £1bn taken out over 2 months
We've been going on about the new pensions freedoms for a while now, telling you what to look out for and whatnot, and it seems a lot of people have been getting stuck right into it.
It has been reported that over-55s have withdrawn £1 billion from pension pots in the first two months since these new directives came into play. According to the chancellor, 60,000 individual investors had withdrawn an average of £17,000 each, after the government allowed pension savers to take money from their pensions whenever they like.
Of course, there's a worry that these freedoms will allow people to fritter away their pensions and spend all their retirement money, and ultimately end up having to rely on state funds. Others have criticised this new pension regime, saying that all this might make things easier for fraudulent investment people, and that older people could be on the receiving end of unexpected tax bills and the like.
You try telling nana that, who has been getting stuck into the gin with her feet up in Majorca for the past 8 weeks.
"The UK has a problem with saving, not spending," says Old Mutual Wealth's Adrian Walker, "so care needs to be taken when deciding how to measure the success of the pension freedoms."
"I would suggest that a more appropriate measure of success will not come for many years, when those people who have withdrawn money from their pensions are still enjoying the retirement they planned and saved many years for."