Here comes the money

Savers have accessed a total of £9.2 billion through pensions freedom since the reforms were announced, with around £1.6 billion taken from pension pots in the last three months.

Figures published by HMRC show a total of 516,000 payments were made from pension pots between April 2015 and March 2016 and over one million payments were made between April 2016 and the end of last year.

The number of individuals accessing their pension on a quarterly basis has almost doubled from 84,000 in the three months to June 2015 to 162,000 as at the end of 2016.

The data from HMRC covers “flexible payments” from pensions, which include full or partial withdrawals, flexible drawdown and buying a flexible annuity.

The Treasury says guidance service Pension Wise has had over 3.7 million visits to their website and carried out over 100,000 appointments since pension freedoms was introduced in April 2015.

*FundStrategy.co.uk

Whilst giving people freedom over what they do with their hard-earned savings is the right thing to do, you should always obtain advice before going ahead.

Despite the official figures, it is difficult to tell how many people are thinking about their long term financial security and how many are grabbing it to spend while they can. It is important that savers are using their pensions to provide a regular and sustainable income because they may run the risk of spending it too quickly and therefore they are likely to run out of money too quickly.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s