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
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter