Pension pots 'can be used to buy Lamborghinis', says pensions minister

KJ, Fee and Chris get their heads round annuities...

SOURCE GUARDIAN: Pension pots 'can be used to buy Lamborghinis', says pensions ministerAffluent people approaching retirement should be free to blow their pension pot on a Lamborghini even if they end up relying on the state for support, pensions minister Steve Webb said on Thursday as the government defended its far-reaching loosening of the rules on annuities in the budget. People on money-purchase pension schemes will no longer be forced to take an annuity – the income guaranteed by pension providers in exchange for receiving all or part of the funds in their pension pot. The chancellor George Osborne believes that the reforms will end what he called the patronising view that people cannot be trusted to invest the funds from their pension pot. Osborne said: "People who saved their whole lives, saved for a pension, these are responsible people … it is their money. They can do what they want."

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