Providers paying out £27m a day since pensions freedom, says ABI

The Association of British Insurers (ABI) said providers paid out £1.3bn in cash lump sums alongside £1.1bn in drawdown payments throughout April, May and June. From 6 April the government allowed savers in defined contribution schemes full access to their savings as long as they were at least 55 years of age. The reforms, which sought to remove the need to buy an annuity for many, were first announced by Chancellor George Osborne in his Budget speech in 2014. Since then, providers have paid out an equivalent of £27m a day, with average cash lump sums worth about £15,000, the ABI s...