First indications are that the “Lamborghini effect” may prove to be illusory. As of March, retirees will have more freedom over what to do with their pensions. Research among its clients by Hargreaves Lansdown suggests that only a small proportion have any intention of draining the pot immediately.
The company is gearing up for an inrush of business after pensions freedom day and says that it has had 143,000 inquiries from potential clients seeking advice. This, and the generally expected rise in self-investment, is one of the reasons for holding Hargreaves Lansdown shares long-term, as I have suggested before, because it is the market leader in providing access to a wide range of investment products.
Another is a good yield on the shares, as the