George Osborne
The Chancellor George Osborne unveiled a raft of radical retirements reforms in his 2014 Budget. Reuters

The retirement market will triple to £50bn in 2023, despite the UK government's radical pension reforms, according to Towers Watson.

The US based professional services firm said the market is set to grow considerably over the next 10 years and, using projections derived from a study of the aggregate value of UK pension pots for different age segments, estimated that inflows into the market will reach £50bn ($85bn, €63bn).

"This growth in the overall market and the increased flexibility retirees will have in how they use their pension pots should encourage innovation from product providers to ensure they offer customers attractive income and protection options," said Jeremy Nurse, a director at Towers Watson.

The findings come after the Chancellor George Osborne unveiled a raft of radical retirement reforms in his 2014 Budget.

Among the Conservative MP's measures was the legislation to enable retirees to withdraw their pension pot without having to purchase a costly annuity.

The UK's pension industry was shaken by the proposal and when the news broke, shares in insurers and annuity providers plummeted.

FTSE 100 constituent Legal & General, for example, saw its shares drop by 14%.

But Towers Watson said that wider savings market trends will result in projected annuity sales rebounding to more than £10bn by the end of 2023.

However, the consultancy did note that the annuity market was worth £12bn before Osborne's reforms and sales have "dropped significantly" in the months since the Budget.