Pension Freedoms: Hot tubs, Gold Coins and Regrets

Two years on from pension freedoms being introduced, the first generation allowed to access their cash reveal the choices they made - and whether they regret them

Emma Wall 26 April, 2017 | 2:19PM
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Have pension freedoms been a success? The data is mixed. A report by State Street Global Advisors, in conjunction with The People’s Pension, has revealed varying outcomes for the first guinea-pig generation allowed access to their retirement savings.

The survey spoke to savers aged between 55 and 70, who are reliant on defined contribution pension pots between £30,000 and £150,000 to provide an income in retirement. This is the first generation of pension savers eligible to take a 25% tax-free lumpsum at 55 from April 2015, with the option of accessing all of their savings at retirement – although there are income tax implications for doing so.

When pension freedoms launched in April 2015, State Street and the People’s Pension commissioned Ignition House to conduct a report following a group of 80 retirees and how they responded to the policy changes.

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About Author

Emma Wall  is former Senior International Editor for Morningstar