John Fox said allowing pension savings to be taken by anyone over 55 as a lump sum and spent on whatever they wish is revolutionary, and will give pensioners more freedom than ever.
Mr Fox said he was worried that the retired may become “petrolhead pensioners”. He referred to comments made by pensions minister Steve Webb when he announced the reforms, effective from April 2015, when he joked that it will be people’s “choice” if they decide to blow their life savings on a Lamborghini.
Mr Fox said this may come true, as a recent poll among -consumers by the self-invested personal pension company found that 20 per cent of people would use their pension savings to splash out on a car, and one in eight wanted to pay for a holiday.
Mr Fox said: “You have to hope that common sense will prevail – and it is encouraging that a clear majority of Britons will keep some their savings invested in a pension scheme when they retire.
Adviser view
Phil Stevenson from Ark Financial Planning in Stalybridge, Greater Manchester, said he was not surprised by Liberty Sipp’s research.
“This is largely being driven by the size of the pot. Those with small pots, typically £30 to £40,000, might say an extra £100 a month isn’t going to make much difference to me.”
