According to The Times, almost 20% of spending from those cashing in their pension pots, since the rules changed in April, will have gone on holidays.

Research by the investment service Hargreaves Lansdown, which looked at the spending intensions of over-55s taking advantage of the new pension rules by assessing their savings, suggests that £186 million is likely to be spent on holidays.

The research also suggests that £176 million will be spent on home improvements, £100 million ploughed into the property market and only a third of the money used for daily living expenses.

The new pension rules give anyone older than 55 the freedom to choose what to do with their pension pot. They can choose to; withdraw their entire pension pot in cash, subject to tax; convert it into an income for life, known as an annuity; or leave their funds invested but take cash out when they need it, known as income drawdown.

Making the most of your pension

Goodtogoinsurance.com have partnered with Riverside Financial Consultants, who are experts in analysing an individual's current pension position.  They can talk you through the pros and cons of all your options and build the most appropriate pension solution for you.

Find out more >>

Travel insurance with cover for medical conditions

If you are planning a big holiday with some of your savings it’s very important to get appropriate travel insurance for your trip, including cover for your medical conditions.

Medical treatment abroad can be very expensive, with hospital stays quickly amounting to several thousand pounds.  Buying travel insurance will ensure that your savings are spent on enjoying your holiday, not emergency medical bills.