George Osborne has defended the changes he made to pensions in the Budget saying people “are capable of making decisions”.
The chancellor announced annuities would no longer be compulsory, and pensioners could take as much or as little out of their pot as they wanted.
Shares in insurance firms fell after the Budget was announced, with the insurance industry commenting the changes posed “significant challenges”.
Osborne told the BBC people should have more freedom to decide how they access their pensions.
“People who have saved through their lives, saved for a pension, these are responsible people who are capable of making decisions – with good advice – about their future,” he said.
“The truth about annuities is that for many people, they will want an annuity, but for many other people annuities have not been good value, they’ve not produced the kind of incomes people hoped.”