Pensions freedom costs retirees £2bn as shift to ISAs continues - LCP

Lost returns

clock • 3 min read
Steve Webb: ""For those who have already used their freedom to take their pension pot in full, more needs to be done to alert them to the real losses they will suffer if they simply park their savings in a cash account."
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Steve Webb: ""For those who have already used their freedom to take their pension pot in full, more needs to be done to alert them to the real losses they will suffer if they simply park their savings in a cash account."

Retirement savers who encash their pots using pensions freedom have missed out on potential collective investment returns totaling £2bn, LCP analysis suggested.

Pensions freedoms, introduced in 2015, allows over 55s to access their retirement funds. LCP said a trend had emerged where people encash their pension pots only to shift the money into cash ISAs or other...

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