Average regular pension withdrawal rate jumps from 4.7% to 5.9% - FCA

276,000 pots being accessed

Tom Ellis
clock • 2 min read

The average annual pension withdrawal rate jumped more than one percentage point between 2016/17 and 2017/18, according to the latest data from the Financial Conduct Authority (FCA).

The regulator's retirement income data bulletin said the average withdrawal rate from drawdown or UFPLS (uncrystallised funds pension lump sum) pots - where a regular payment is set up - rose from 4.7% to 5.9% over the last two financial years. In this context, the FCA data compares the mid-point for each withdrawal rate band (see graph below). Although the financial watchdog's data shows many of the pots that were drawn down by 8% or more were small pots, more than 20,000 pots worth more than £100,000 were accessed at this higher rate. The following graph shows that a withdrawal rate...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Pensions

EV launches digital retirement toolkits to improve understanding

EV launches digital retirement toolkits to improve understanding

'The tools can help them make a better informed decision'

Martin Richmond
clock 25 January 2023 • 1 min read
Govt rejects call to set AE contribution increase timetable

Govt rejects call to set AE contribution increase timetable

Government makes series of rejections to WPC report

Holly Roach
clock 23 January 2023 • 3 min read
TPR strategic direction will not change under new CEO

TPR strategic direction will not change under new CEO

Pensions industry does not believe new leadership will lead to significant change

Holly Roach
clock 19 January 2023 • 2 min read