Ministers are preparing to announce changes to the rules on pensions that they insist will allow increased freedom for pension savers.

From April, there will be no obligation to buy an annuity from an insurance company with money saved in a pension.

More flexible options will include continued investment or moving to a process called "income draw-down".

But it is thought that a limit will still be imposed on the amount of money a pensioner can take from their fund at any one time.

The proposed law will, as promised in the June emergency Budget, remove the effective obligation to buy an annuity at age 75.

However, the new law will stop people spending all their pension savings and then falling back on the state.