28th March 2014
Despite the upcoming pensions overhaul where retirees will be able to take their entire nest-egg as a lump sum, new research show only 3% of the over 55s find spending their savings as soon as they can get access to them the most attractive option.
The survey from retirement specialist MGM Advantage also found that some 42% of adults in this age group like the certainty of using an annuity to provide some form of regular income.
In addition some 43% of the over 55s like the freedom of managing their own money without an annuity but attempting to make sure it lasts throughout their lifetime.
The data also shows some uncertainty following the changes announced last week, with 12% unsure which option appeals most.
Aston Goodey, director of sales and marketing, MGM Advantage says: “As a temperature check of how people are thinking shortly after the Budget, these numbers show that the vast majority of people won’t blow the lot. On the contrary, most people like the freedom and choice the new options provide, although many still want to secure a regular income using an annuity.”