Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Osborne: a third of savers will take their money out of pensions

Osborne: a third of savers will take their money out of pensions

George Osborne estimates a third of savers are expected to take their money out of pensions under liberalisation.

Appearing before the Treasury Select Committee, Osborne was asked about a letter he recently sent to the Financial Conduct Authority’s chair about information concerning pension reforms.

Asked about estimates that over 33% of people would take their money out of pensions, he said: 'it's a reasonable costing estimate.'

Osborne was then asked if he was encouraging savers to take money out of their pensions.

'A pension is an attractive product you can invest in if you'd like, but I have made the use of that pension pot more flexible, which could make it more attractive,' he said.

He added: 'But it's a new area of policy, so it's uncertain.'

The saving rates fell to 4.9% in 2014, and is anticipated to fall to 3.2% by 2015-2016. The chancellor said his priority was to 'incentivise saving', but acknowledged changes would not happen overnight.

'We, as an economy need to save more. The measures I have set out [in the Budget] incentivise savings and reward savers, but it can't happen overnight.'

'It is not a quick fix job, you have to turn around a supertanker,' he added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Play Henderson's Lofthouse on merger boost and political risk

Henderson's Lofthouse on merger boost and political risk

Ben Lofthouse talks through where he is finding income and what surprises await the global economy in the new year.

Read More
Your Business: Cover Star Club

Profile: 'a lot of the hard work is done' says Charles Stanley

Profile: 'a lot of the hard work is done' says Charles Stanley

We’ve turned a corner, and there is positive momentum behind Charles Stanley says Charles Stanley's private client head

Wealth Manager on Twitter