An overwhelming majority of consumers believe the Government’s pension freedom reforms have made pensions more attractive, research shows.
A survey of almost 7,000 investors by Hargreaves Lansdown found 94 per cent of respondents believe the freedoms have made pension saving more attractive.
Some 56 per cent of investors said they would consider income drawdown for some of their pension, while 29 per cent said they would consider it for all of their retirement pot. The remainder said they would not consider drawdown at all.
The survey also found that 37 per cent of investors believe a guaranteed retirement income is “extremely important”, while a further 35 per cent said it is “quite important”. Only 4 per cent said it is not important at all.
For investors looking to take cash from their pension, the two most popular intended uses were to provide an income to live on and to invest in Isas.
The most popular single expenditure item was buying a car, which came higher than holidays and home improvements. Only 4 per cent of investors said they would draw money from their pension to invest in property.
Hargreaves Lansdown head of pensions research Tom McPhail says: “The Budget reforms have had a remarkable impact on investor sentiment towards pensions. At a stroke the Chancellor has reinvigorated pensions and made retirement saving attractive once more.”