Pensions - Articles - Record breaking HMRC pension withdrawal figures


HMRC flexible payments from pensions figures reveal a record £2.75bn was withdrawn from pension savings in Q2. This represents an all-time high by some distance, up by 21% (around £500mn) from the previous peak of £2.27bn in Q2 2018. In total, nearly £5bn has been flexibly accessed from pensions so far in 2019 and nearly £30bn since the introduction of pension freedoms back in 2015.

 Stephen Lowe, group communications director at Just Group, commented: “While Q2 usually represents a high point for flexible pension withdrawals following the start of the new Tax Year, the jump in 2019 is bigger than ever before and represents a 21% increase from the previous high recorded over the same period last year.

 “But billions of pounds of tax free cash payments are not included in these figures nor are many other pension withdrawals, such as small pot withdrawals or purchases of guaranteed income for life solutions. On top of this, the figures don’t tell us how much individuals have withdrawn or how often.

 “More than four years on from the introduction of pension freedoms we still do not have anywhere approaching complete information on how these reforms are influencing the retirement outcomes of millions of people.

 “In the absence of any meaningful data it’s absolutely essential that the FCA prioritises the challenge the government has set it to ensure everyone receives independent and impartial guidance before accessing their pension savings – making sure that choosing not to take guidance is an active, rather than a passive, choice.”
  

Back to Index


Similar News to this Story

4 ways completing a tax return can help boost your pension
Missing the Self-Assessment deadline not only risks a penalty for late filing but could cost individuals hundreds, if not thousands of pounds in uncla
DWP holds AE thresholds with GBP90bn of pensions expected
The DWP has issued its review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2025/26, retaining all three thresholds at
Response to Triple Lock means testing comments
Aegon has called for ‘a future focused debate on a sustainable state pension’ following comments on the Triple Lock by Conservative leader Kemi Badeno

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.