2.1m over 55s can cash in on their pension pot from today!

For the first time 2.1 million over 55s will have access to billions of pounds from today,   are able to cash in on their pensions and spend them as they wish. Prime Minister David Cameron, has blown his own trumpet, that nearly 2.1 million over 55s will able to cash in all or part of their pension from April. Government has appointed over 300 advisers to help millions of potential UK pensioners with the biggest pension reforms of the century. Pensions Minister Steve Webb had a word of warning : “ You can spend years of saving into a pension only to find yourself conned out of your money in the blink of  an eye”. Pensioners aspiring to cash in their pension pots straight away could face a waiting up to 3 months. Some providers are hoping to cash in on this by imposing punitive exit fees for those wanting to withdraw the cash.

Building Societies like Nationwide is giving anyone up to the age of 70 the once in a life time chance to take out a 35-year loan, triggering a buy-to-let boom. The average buy-to-let properties are standing at £300,000, as the house prices are increasing at 8.5 percent this year. A government statistics suggest one in five homes are owned by private landlords and by 2030 this is expected to rise to one in three.

Financial Experts, warn, that withdrawing large sums from pension pots will trigger heft income tax bill. Only a quarter of the pension pot is tax free and the rest is taxed at 40 percent. If you are taking out £150,000 will generate a £45,000 demand from HMRC.

At least a million savers are being targeted and tempted to put their money into property – and this will eventually push up the house prices.

Banks are also considering joining the bandwagon and allow borrowing beyond the retirement age by raising their age limits.

A US financial think-tank said many Britons would blow their pension pot savings and will be left penniless compelled to reply on State Pension.