Pension freedoms could see millions run out of retirement cash - Age UK

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Additional safeguards should be placed on pension freedoms to ensure people do not burn through their pension pots in the first years of retirement or get caught out under tax rules, Age UK has said.

Research from the charity said pensioners could exhaust their retirement savings by age 75 if they withdraw an annual £3,000 from an above-average sized pot. The £29,000 sum would run dry by 74 if the withdrawal increased with the annual rate of inflation, assuming the worker retired at 65 and the rest of their savings matured at a rate of 3% per year, Age UK warned. The effects could be worse for employees who have median pots of £20,000, the charity said. Its Dashboards and Jam Jars report found people could run out of cash by age 76 even if their pot grew at an annual rate of 5%...

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