Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter