Pension freedom: counting the cost

More people are accessing their pension fund, but how can you protect against fraud?

An elderly person holds cash
(Image credit: Matt Cardy/Getty Images)

It has been more than three months now since massive changes to pensions came in, giving anyone over the age of 55 far more freedom to choose how they use their retirement savings. Retirees can now opt to buy a set lifetime income in the form of an annuity, take income while keeping most of their pension invested, or take lump sums as and when they want. So, what have people been doing?

Research from the Association of British Insurers (ABI) found the number of people buying annuities has significantly decreased. This will come as no surprise to most people as the meagre rates offered on these policies has made them a far from appealing retirement income option for many years.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More