Dominic Grinstead, managing director of MetLife UK, has warned those embracing the pension flexibilities to not lose focus on securing a guaranteed income.
Mr Grinstead said that in the wake of April’s pension reforms, products offering guarantees on capital and income would become even more important than before.
He said: “The flexibility is very welcome but people need to ensure they have a guaranteed income for life to enable them to plan for the future.”
His comments came after research among 1,006 pensioners found the average household income in this group was £22,740 but 22 per cent of respondents worried they were spending their savings too fast.
Discussions about the possible dangers or benefits of the pension reforms have continued since the implementation of the changes in April.
On 18 June pensions minister Baroness (Ros) Altmann said: “Some people may be reckless and most will need protection, guidance and even advice, but the new pension freedoms are right in my view.”
Matt Raine, director for Leicestershire-based TM Asset Management, said: “There is a problem that any product guaranteeing income could limit your flexibility, but I am sure there will be products in future that can combine the two.”