BRITISH pensioners are cashing in and heading abroad to make the most of new pension reforms.
Buying a holiday home abroad – particularly in Spain – has been identified as ‘one of the main investments’ made by pensioners withdrawing large sums from their savings.
Reforms introduced earlier this month by UK chancellor George Osborne allow people unlimited withdrawals from their pensions after age 55.
And while most people are not seeking an immediate payout it seems those that do are spending it overseas.
“While it is far too early to draw any definite trends, it has been interesting to see the wide variety of reasons people have given [for withdrawals] – everything from paying off debt to purchasing a speedboat,” said Jamie Jenkins, head of pensions strategy at Standard Life.
“It serves to remind us how varied people’s lives are.”
Property investment was identified as the ‘number one’ reason for withdrawing money, whether that be paying off a mortgage, buying a holiday home or investing in the UK.
While a Bentley, a speedboat and ‘thai girls and booze’ were just some of the alternative reasons offered by pensioners withdrawing their cash.