Retirees banking on 10% withdrawal rate 'will drain pots in a decade'

Carmen Reichman
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The average pension pot will last for just ten years in retirement if consumers withdraw funds at the rate they see fit, research has shown.

An Old Mutual Wealth poll found consumers expect to withdraw about 10% of their pot each year to fund their retirement, a stark overestimation, according to the firm. The survey of 1,000 people aged 55 plus conducted in March found the average pension pot was £87,500 and the average amount people expected to take in income each year was £9,000. The firm pointed out that, even with a growth rate of 5% per annum, the findings meant the average pot would last about a decade. Consumers aged 55 plus have been given access to their pension pots from 6 April, when the government's retirem...

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