View more on these topics

Pension freedom payments pass £6bn mark with Q2 surge

Exploding-Piggy-Bank-700.jpg

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number of people using the pension freedom reforms to access their savings has surged since April, meaning the total withdrawn from pots has passed the £6bn mark.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

Recommended

FCA logo glass 3 620x430

FCA to target non-advised sales in pension freedom review

The FCA has published the terms of reference to its Retirement Outcomes Review; a major study into how savers and providers are reacting to the pension freedoms. As part of the review the regulator will look at areas including shopping around and product switching; non-advised sales; and changing business models. In addition, the FCA is […]

Trott
1

Claire Trott: Without advice there is no pension freedom

One of the biggest issues with pension freedoms is that pensions are now perceived as being simple and easy to access without financial advice. Nothing could be further from the truth. The Government’s reference to pensions being used as bank accounts hides the truth that we are still dealing with the same issues as before […]

Business-Finance-General-Paperwork-Calculator-Investment-700.jpg
13

Savers ignoring FCA risk warnings on pension freedoms

Pension savers are showing total disregard for the FCA’s risk warnings that were brought in to protect retirees from the most damaging choices at retirement. New figures produced by Citizens Advice show just 1.6 per cent of people who received the warnings – which are delivered by providers – changed their mind as a result. […]

Guide

Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. And the tax take on this was??
    And the advice fees were???
    Sure annuities are poor at present, but retirement isn’t compulsory.

  2. On my clients Harry

    Tax NIL
    Advice fees NIL

    I bet those clients who have IFA,s the story may be similar ?

    This leaves non-advice !

Leave a comment