Former pensions minister Steve Webb has told New Model Adviser® that pension providers don't know best when it comes to judging whether people's retirement decisions are appropriate or not.
Speaking to us as part of our pension freedom 'MOT' series, Webb said that the statistics regarding withdrawal rates could be misleading.
He said: 'Even if you look at the individual pension pot there was a story recently that said providers were thinking of warning people what the right rate to draw down your pot is.
'Well providers don't know, because providers see that one pot. You might be in a household, you might have lots of pension pots, it might be entirely rational to retire at 60, blow the entire pot in five years, and then at 65 draw your state pension, draw your [defined benefit] pensions, and yet - if you look at the statistics - that's somebody going mad.'
He also told us why the freedom and choice reforms, which require savers to make active decisions about their retirement savings, was compatible with the auto-enrolment policy, which is based on inertia and inaction.
You can catch up on the first episode of our pension freedom 'MOT' series here.