East Midlands second in country for increased pension savings

East Midlanders were second in the rankings Credit: John Stillwell/PA Wire

More than one in five pension savers in the East Midlands has decided to build a bigger savings pot as a direct result of the new retirement freedoms, a report has found.

Research from pensions firm Aegon UK found that 22% of those with a pension in the East Midlands said they had made up their minds to increase their contributions as a result of the reforms, which were launched in April.

The figure was slightly lower in the West Midlands, with 18% of pension savers deciding to do the same.

The reforms mean that people aged 55 and over to use their pension pot how they wish to, subject to tax.

Previously, they would have been required to buy a retirement income called an annuity with their pension pot.

Annuities have been controversial in recent years due to disappointing rates and concerns that people were not shopping around to get the best deal.