Pension freedom payments pass £6bn mark with Q2 surge


The number of people using the pension freedom reforms to access their savings has surged since April, meaning the total withdrawn from pots has passed the £6bn mark.

New figures released by the Treasury today show 159,000 individuals made 256,000 payments totalling £1.8bn between April and June this year.

This compares to £820m in Q1 and £1.6bn in Q2 2016.

In all over £6bn has been accessed across 772,000 since the reforms launched in April 2015.

However, industry reporting was only made compulsory from April 2016, so the Government expects the rise to be partly caused by this.

Economic secretary to the Treasury Simon Kirby says: “It’s only right that people should have a choice over what they do with their money and today’s figures show that pension freedoms continue to be a popular choice.

“Our pension reforms have already given hundreds of thousands of people access and responsibility over their hard-earned savings and we will continue to make sure that the pension freedoms work well for everyone.

“We will work with our partners, such as Pension Wise and the Department for Work and Pensions, to ensure consumers are protected and that there is clear information to help people understand their options.”