Pensions - Articles - Cash in the bank, not Lamborghinis, risk to pension freedoms

 “As this report shows, the big risk to the success of the pension freedoms is not pension money being spent on Lamborghinis; it is pension cash being moved into bank accounts and left to dwindle. If pension savers are putting their money into a bank account on a temporary basis before reinvesting it, then there is less to worry about. But if they simply leave their money in an account paying little or no interest, they will see its real value decline year-after-year through inflation.

 “It is vital that anyone considering taking their money out of their pension pot has access to high quality advice and guidance, which stresses the option of leaving the money invested. Consumers need to be made aware that putting your cash in an account paying very little interest is not a safe option and will mean that you are missing out on the returns you could get if you left your pot invested.”