Savers ignore guaranteed annuity rates to cash out small pots, FCA stats show

68% of GARs were not used between July and September 2015

Jenna Towler
clock • 3 min read

Almost 180,000 retirement pots were accessed using pension freedom between July and September last year, latest statistics from the Financial Conduct Authority show.

The regulator said 178,990 pensions have been accessed by consumers to take an income or fully withdraw their money as cash. Pension freedom was introduced in April last year. It gave people aged over 55 with a defined contribution pension complete access to their pots. It gave people more choice than the traditional purchase of an income for life through an annuity contract. Of these 120,969 pensions (68%) were fully cashed out. It said 88% of these fully cashed out pots were small pensions. The FCA said 58,021 pensions (32%) were used to take an income after tax-free cash using e...

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