Savers shift cash from pensions to bank accounts despite tax hit

The provider said it feared many people who are taking advantage of pensions freedom were unaware of the consequences of leaving the pension tax wrapper. A survey of 800 Royal London customers who had made the decision to utilise pensions freedom found nearly 70% wanted to encash their pots in full. A quarter of pension payouts will be tax-free with the rest, 75%, taxed at the person's marginal rate. Royal London said 16% of those polled wanted to use their money to clear their mortgage or other debts. However, 32% said they were withdrawing their pension cash to put it into anothe...