Frivolous spending of pension pots resulting in retirees on benefits

Evidence that some people are squandering their newly accessible retirement pots has been given at an inquiry into pension freedoms.

Pamela Hewitt, a former welfare benefit officer for a large social housing landlord in Lancashire spoke in a personal capacity to the Commons work and pensions committee, which is conducting an inquiry into pensions freedoms.

In her submission, she regaled to the MPs how one man with a lucrative job as an engineer had frivolously spent £120,000 of his pension after being made redundant.

Ms Hewitt, who was speaking in a personal capacity, told the committee how her client had "spent every penny on gambling, a car and alcohol".

This man is one of five of Ms Hewitt's former clients who have squandered their retirement savings and are now living on benefits.

George Osborne introduced the pension freedoms in 2015 in his capacity as Chancellor of the Exchequer.

The rules allow those over the age of 55 to access their retirement savings and spend as they wish.

The Financial Conduct Authority (FCA) published figures in July this year, that show one million people have accessed their pension pots since the new rules cme into force.

Around 750,000 of those savers are below the age of 65.