Changes to U.K. pension rules -- which allowing savers to raid their pension pots -- have prompted concerns that some people could splurge all of their savings in one go. But, according to some analysts, those fears could be overdone.
The changes, which were announced by U.K. Chancellor George Osborne last year, but launched earlier this month, mean that individuals over the age of 55 do not have to wait until retirement to start withdrawing from their pensions.
People can now do as they wish with their savings rather than having to buy an annuity, which provided a fixed, regular income and was a legal requirement until now.
From April 2015, however, individuals saving into defined contribution (DC) pensions are to gain complete access their savings from the age of 55, while those with funded defined benefit (DB) pensions are able to exchange their future retirement income for a pension pot before retirement and access their savings flexibly.