People should be trusted not to spend their entire pension pot on retirement, the Pensions Minister has told ITV News' Deputy Political Editor, Chris Ship.
Steve Webb there were "good tax reasons for not blowing the lot", but added it should be down to people's "free choice".
The government's pension reforms will force annuity providers to "up their game", meaning "good news for consumers", Pensions Minister Steve Webb says.
Some providers' share prices tumbled following the announcement of the measures, but Mr Webb told ITV News' Deputy Political Editor that such big announcements require confidentiality.
George Osborne has dismissed claims that his Budget was aimed at the "grey vote" following headline measure that appealed directly to pensioners.
In an interview on Daybreak, the chancellor said measures for savers are for people of all ages "thinking about their future".
Pensions providers and insurers have taken a hammering on the stock market as investors counted the cost of George Osborne's "Budget for savers".
In a session when the FTSE 100 Index ended 32.2 points lower at 6,573.1:
- Legal & General dropped 19.3p, or 8%, to 211.2p
- Aviva fell 26.6p, or 5%, to 490.4p
- Standard Life declined 11.4p, or 3%, to 354p.
- Prudential slid 29p, or 2%, to 1,339.5p
Meanwhile on the FTSE 250, Partnership Assurance, which provides enhanced annuities for people with lower life expectancies, lost more than half its value, plummeting 176.2p, or 55%, to 143p.
Nigel Green, chief executive of one of the world's largest independent financial consultancies, has slammed George Osborne's decision to lift pensions access restrictions, calling it "dangerous," "short sighted" and "ill-conceived".
Mr Green of the deVere Group said after the Budget announcement:
This move to scrap the restrictions is in direct conflict with the spirit and purpose of pensions - which is to provide the individual with an income throughout their retirement.
It’s a depressingly short sighted approach from the Treasury.
ITV News Business Editor Joel Hills tweeted:
National Association of Pension Funds describes Chancellor's annuity reform as "perplexing" and "little robust modeling". Ouch.