Fears that pensioners would fritter away their savings on luxury purchases have not been borne out since the rules surrounding pensions were changed at the beginning of this week.
The reforms have granted savers new freedoms, allowing them to access their pension pots for the first time, and just one per cent of 50-75 year olds have said they will use the entirety of their retirement funds to “treat themselves”.
According to a poll from financial services firm PwC, 27 per cent of the 1,200 retirement age UK adults surveyed said they intended to spend some of their money on “general expenditure, treating themselves or on home improvements, unsecured debt and mortgages”.
Meanwhile, 45 per cent of consumers are aiming to use their pension pot to draw an income using a drawdown product.
Jonathan Howe, insurance leader at PwC, said: “This survey highlights that many customers are keen to take control of their retirement planning and be more proactively involved in investment and savings decisions.”