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Pension freedom withdrawals top £10bn

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Consumers have taken advantage of the pension freedoms to withdraw more than £10bn from their pots, latest HM Revenue and Customs data shows.

Figures for the first quarter of 2017 show 176,000 individuals drew 381,000 flexible payments from their pensions, taking out a total of £1.59bn.

The figure is the highest for three quarters, but is down on its peak of £1.77bn in the second quarter of 2016.

Total payouts since the freedoms were introduced in April 2015 have now hit £10.8bn, with £6.4bn having been withdrawn since the second quarter of 2016.

Demand did dip in the final quarter of 2015 and the first quarter of 2016 as initial interest subsided, but now looks to have flattened out.

Hargreaves Lansdown head of policy Tom McPhail says: “After the initial bow-wave of demand in the first two quarters of 2015, the retirement income market appears to have settled and stabilised remarkably quickly. Annuity transactions (reported elsewhere) have stabilised too at around 20,000 a quarter; so all this data suggests the pension freedom reforms are bedding in well.

“We would like to see policymakers producing more detailed qualitative analysis now, digging into individual investors’ circumstances and decision-making to make sure they’re not going to be running out of money 15 years from now.”


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Tax raised from people making use of pension freedoms has exceeded initial Government estimates for 2015/16 and 2016/17 by £1.7bn. According to Budget documents released yesterday, the Government initially estimated it would raise £300m in 2015/16 and £600m in 2016/17. However, £1.5bn was actually raised in 2015/16 and the latest estimate for 2016/17 is £1.1bn. […]


Over £9.2bn accessed through pension freedoms

Savers have accessed a total of £9.2bn through pension freedoms since the reforms were announced, with around £1.6bn taken from pension pots in the last three months. Figures published by HM Revenue & Customs show a total of 516,000 payments were made from pension pots between April 2015 and March 2016, and over one million […]


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By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]


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

  1. And for how many people, we wonder, has cashing in their pension fund actually been a prudent long term decision?

  2. Christine Brightwell 27th April 2017 at 12:01 pm

    I suspect the Govt does not care if the tax take in up!

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