Pension freedom: Fewer than one in five have used Government's guidance service

People are rushing to get at their pension cash without considering the short-term tax implications, or the long-term consequences for their retirement years

Making a financial decision without taking advice could be costly (REX Features)

There have long been warnings about the dangers of the Government's pension freedoms. New figures published this week appear to confirm concerns that many people are rushing to get at their pension cash without considering the short-term tax implications, or the long-term consequences for their retirement years.

Handing people the right to choose what to do with their savings may sound a good idea, but by not ensuring that consumers have enough information to make a wise financial decision, the Government has acted irresponsibly.

Fewer than one in five people have taken advantage of the Government's own Pension Wise guidance service, which suggests they don't know about the free service or have simply ignored it in their eagerness to get their hands on their cash.

If either is true then there could be huge problems later when people discover the full financial impact of their decision – and the look for someone to blame for their lack of financial security in retirement.