Pension freedoms: everything you need to know

You now have more options than ever when it comes to your retirement savings. But what are they, and what are the risks?

shutterstock_643476748_1.jpg

In his 2015 Spring Budget, then-chancellor George Osborne introduced sweeping changes to the way that pensions are taxed. The new rules have led to people taking a variety of different choices when investing their nest eggs - but have also meant that the over-55s have become an attractive target for fraudsters.

Prior to April 2015, when most people with a defined contribution pension reached retirement age the only option available was to buy a financial product called an annuity, which involved using their pension savings to purchase a guaranteed income for life. These products sometimes came with special conditions or guarantees.

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