View more on these topics

Fidelity: Just 6% plan to cash in entire pension pot post-Budget

Fears that huge numbers of people will cash out of pensions when the Budget freedoms go live in April next year appear to be unfounded, according to a Fidelity Worldwide Investment report.

Only 6 per cent of a sample of 500 people retiring between April 2015 and March 2016 plan to take all of their pension savings as cash, according to the firm. Almost a quarter of people who don’t expect to take their entire pot as cash plan to enter drawdown.

Meanwhile, some 15 per cent expect to buy an annuity after taking the tax-free lump sum, while a further 16 per cent plan to do nothing.

However, only 17 percent of people have a clear retirement plan in place, with a quarter saying they are waiting until the freedoms come in before firmly deciding what to do.

Fidelity Worldwide Investment retirement director Alan Higham says: “While the research shows that annuities still have a role to play, it’s clear the class of 2015 don’t just want to get access to their cash in their pensions quickly. They want to take advantage of the freedoms to mix up what they do with their pension pots.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm