Here’s what AJ Bell has to say
UK consumers have withdrawn £10.8bn from pensions during the first two years of the pension freedoms, new figures have shown.
Over £1.5bn was withdrawn in Q1 2017 while the average withdrawal per person continues to fall and now stands at £9,034 – less than half the average withdrawal in Q2 2015, the first quarter of pension freedoms
Tom Selby, senior analyst at AJ Bell, said: “The pension freedoms have clearly been hugely popular, with HMRC figures suggesting well over £10bn has been accessed flexibly in the first two years of the reforms. Given industry reporting was optional in 2015/16, it’s likely the actual figure is significantly higher.
“It is interesting to note that the average withdrawal per person continues to trend downwards, standing at just over £9,000 in Q1 2017. Hopefully this is indicative of savers managing their retirement incomes sensibly and making withdrawals at levels that will be sustainable over the long term.”
|Average withdrawal per person