Pensioners prepare for radical new spending freedoms

About half a million older savers will be handed radical new freedoms from next week as a "new pensions culture" dawns on April 6th.

Up to £140 billion of savings could be released when millions of over 55-year-olds are allowed to cash in their pension pots, ministers have said.

Under changes announced by Chancellor George Osborne in last year's Budget, savers will no longer be required to purchase an annuity and will be able to spend the money as they choose.

They could take their savings in one go, or use it like a bank account and withdraw cash in slices.

Experts said that for many people, the best option will be to resist making an immediate dash for their cash and they urged people to take time to carefully weigh up their options.

Financial services firm Hargreaves Lansdown carried out a survey to find out what some people plan to spend their pension on:

• 47.1% plan to reinvest money in non-pension savings or investments such as an Isa.

• 15.9% are considering home improvements.

• 15.2% say they will pay off debt.

• 14.5% would like to try property investment.

• 7.2% want to go on holiday.

• 6.5% are planning to give gifts to family.

• 19.6% are not sure.

• 6.5% would like a new car