‘Little reason’ for pension pot fears

There is “little reason” for concern that retirees are using new-found pension freedoms to blow their savings pots, according to an insurer’s analysis of customers who have taken financial advice.

Royal London looked at data from a sample of more than 17,000 customers who were supported by financial advice to see how they were handling their drawdown pots in retirement.

More than a third were taking out between 3 per cent and 6 per cent of their pension pot a year, seen as a broadly sustainable amount.

The pension freedoms were introducedin2015togiveover55s a wider range of choices over how they use their pension pot.

People can receive free guidance about this from the government-backed Pension Wise service and they may also choose to take separate financial advice.