Will New Pension System Work?

A small number of people may decide that the best use of their retirement savings is the holiday of a lifetime rather than a secure income for a lifetime

Fidelity International 21 March, 2014 | 12:32PM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Tom Stevenson, Investment Director at Fidelity Worldwide Investment ponders the long term effect of the new pension initiatives announced in the Budget.

The naysayers didn’t take long to emerge. After the initially positive reaction to George Osborne’s remaking of the savings landscape, sceptics soon noted that if you give people the freedom to manage their money as they choose they might actually use it.

This means, as Treasury Secretary Danny Alexander admitted on Newsnight, that a small number of people may decide that the best use of their retirement savings is the holiday of a lifetime rather than a secure income for a lifetime.

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Fidelity International

Fidelity International  

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