UK's 'Pension Freedom Day' could herald confusion for months

Edinburgh

WEEKS before Britons get free rein over how to spend their pension pots, industry players say it is unclear how many will choose to leave the safe harbour of an income-bearing annuity.

Some retirees are expected to ditch plans to buy those previously obligatory annuities in favour of more flexible pensions, while others could pay off debts or even splash out on treats such as a luxury cruise, in a huge shake-up for the sector.

On Sunday finance minister George Osborne went a step further by offering pensioners the freedom to cash in their annuities in exchange for lump sums.

The shock industry reforms, announced a year ago, mean from April 6, more than six million pension-holders will no longer need to buy a fixed-rate annuity…