The second article in the 20th August Financial Times was:-
“Two thirds of savers ……… cash in pension pots”
This is a result of the new freedom introduced in April this year which allows pensioners to cash in their entire pension rather than having to invest most of it in an annuity.
The pension companies have resisted this reform and done their best to frustrate it with high withdrawal charges. Nonetheless, 85,000 people have already taken the opportunity to withdraw some money, even though they may have to pay tax on some of it. Most of the pension pots involved are relatively small – averaging around £15,000, but it may be enough for some pensioners to pay off a mortgage, renovate the house, buy a new car or go on the trip of a lifetime.
Gone are the days when you trusted your hard-earned money to overpaid financial institutions to invest your savings safely. This is the live for today, to hell with tomorrow baby boomer pensioner generation.