Pensions industry reacts to George Osborne's radical reformsIBTimes UK

When you think of fast cars and lumps of cash, you don't usually associate them with pensioners.

But this week has seen the backlash to George Osborne's radical retirement reforms, unveiled in his "makers, doers and savers" budget.

After the government said retirees won't have to buy an individual annuity next year, under its "pensions revolution", the Association of British Insurers weighed into the debate this week criticising Osborne and Co. for not giving providers advanced warning about the bombshell he unleashed.

Next up was Legal & General, one of the UK's biggest annuity providers. The firm's boss, Nigel Wilson, warned investors the market could shrink by a whopping three-quarters.

Elsewhere, the Pensions Minister Steve Webb countered worries that retirees could blow their hard-earned savings on luxury items by arguing it was people's "choice" whether to buy Lamborghini sports cars or not.

The news comes after Fitch Ratings said it is unlikely that insurers will be hit by a credit rating downgrade after the pensions overhaul.

But, like L&G, the firm did warn that if the Chancellor's radical proposals are implemented, they would "significantly" reduce the UK's annuity market.