In his last Budget speech, writes Tony Watts, Chancellor George Osborne surprised everybody – not least the entire pensions industry as well as many of his fellow Conservative MPs – when he announced proposals to totally revisit the way that those entering into retirement can arrange their investment portfolio.

Out would go the tyranny of annuities; in would come – well, choice.

Everyone can now use their accumulated savings far more imaginatively – including taking a far larger lump sum out before you hit the tax barrier.

The announcement sent tremors through the financial services sector, which had been coasting along comfortably offering a range of annuities and (in too many cases) hoping that contributors who had spent years building up a pension pot would simply carry on with the same provider.

That isn’t to say that annuities cannot offer excellent value. In many cases, they remain the best option – especially if you or your advisor are prepared to shop around. For those whose health has been compromised, enhanced annuities can be especially attractive. These, of course, are taking a calculated risk on your life expectancy – live long enough and you’ll reap the rewards!

The announcement has certainly made every financial advisor put on their thinking cap: more choice means more research. Expect more products to come into the market in the coming months too.

One of the interesting elements of the new regime is the relaxation around the lump sum that can be taken out at the point of retirement – or indeed earlier (from 55).  As of now, you can take up to £30,000 out as a lump sum; from April 2015 that moves to 25% of your total pension pot without paying tax on it.

Indeed, you could (if you so wished) take ALL of it out, and there were widely reported comments from Pensions Minister Steve Webb that the Government was quite relaxed about this possibility.

Having quizzed him personally on this, I can vouch for the fact that the reason for this relaxed attitude is that no one in their right mind would take out enough to buy a super car – simply because you’d be taxed so heavily on it. They are relying on common sense prevailing, and I suspect that they will largely be proven right.

But this option does pose some interesting possibilities. Could you, for instance, take out a large amount from your pension pot – at retirement or from age 55 even – and invest it in a buy-to-let property?

The short answer, depending on the size of your “pot” and your attitude to risk and return, is “why not?”

If you’re armed with a deposit of 25% or (ideally) more, there are buy-to-let lenders out there currently offering sub 5% rates. Net yields in many parts of the country (after agents fees and other costs) are between the 5% and 6% marks, so you could actually see a profit on what you borrow as well as get a decent return on your capital. Then there’s the longer-term expectation of capital growth.

The rates (and arrangement fees) will vary depending on your deposit, so look carefully through the various offers to see what they really add up to long as well as short term.

If it’s yields you’re after, you might be well advised to look in those less fashionable parts of the UK where demand is still high but property prices relatively low (for instance Wales, the North West, North East and Midlands), although these may not deliver the same capital growth as “hot spots” such as London.

Equally, buying property in a lower cost area enables you to own a higher percentage of the property or even build a portfolio – enabling you to spread your risk.

The key consideration is demand: find a house or apartment in an area that would find a ready tenant or – in the case of a house which can be divided up – multiple tenants. Consider also what value you could add to the house and the rent by refurbishing it. A good agent should be able to guide you on how this might work – and some will even know of new homes that developers are keen to shift because they are end of scheme.

So the sums could well add up. But who wants all the hassle of managing a property?

For some people entering retirement, it can be an ideal choice – especially if it’s local, they’re handy with repairs and decorating, and they’re happy to manage the property themselves.

Otherwise, it’s a question of finding a reliable agent to do the work for you.

Here caution is commended: having an ARLA registered agent should guarantee a reasonable quality of service – and the chance to complain to a professional body if you’re unhappy. If they’re also registered with SAFE, your money and that of the tenants is also secure.

When it comes to selecting an agent, do some homework as this can make all the difference. The lowest fees or the promise of getting the highest rent don’t always guarantee the best return – one month’s extra void period can represent far more than a percentage point or two on the fee. And on that point, do make sure you have enough in the kitty to keep up any mortgage repayments to tide over any void periods.

Being a buy-to-let landlord is not as hands free as some other forms of investment, or as liquid. But it’s an interesting option to consider, and talk over with your independent financial advisor.

And to find out just what it would do to your income and assets in the years ahead, simply key it into your RetireEasy LifePlan. No matter how many variations you put in, it will do all the maths for you.