Pensions minister: retired people could buy a Lamborghini and end up on the state pension

Pensions minister Steve Webb has said the government would not have a problem with pensioners taking their entire pension pot in one go, buying a Lamborghini and living off the state pension.

Lib Dem Webb told the BBC he was relaxed about how people spend their pension following rule changes announced in Wednesday’s Budget.

He said: “If people do get a Lamborghini, and end up on the state pension, the state is much less concerned about that, and that is their choice.”

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However, shadow chancellor Ed Balls said that approach could leave people running out of money.

He added that it was necessary to look at the details as it could also be used for wealthy people to avoid paying tax.

“We need to make sure what the chancellor is saying … doesn’t end up returning to the mis-selling scandals of the past.

“I just don’t want to find people in their 50s today with pension pots finding out in 10 years’ time what the chancellor called liberalising and radical ended up being reckless and irresponsible”

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