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 for free

  • 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

MoneyHelper pension dashboard expected to launch in 2027/28

MoneyHelper pension dashboard expected to launch in 2027/28

Maps CEO says ‘significant’ progress has been made since schemes began connecting to ecosystem

Martin Richmond
clock 21 May 2026 • 2 min read
Up to 15 million not saving enough for retirement, Pensions Commission warns

Up to 15 million not saving enough for retirement, Pensions Commission warns

Report looks at the state of retirement saving in the UK

Holly Roach
clock 19 May 2026 • 3 min read
Standard Life extends Sharia proposition with lifestyle strategy launch

Standard Life extends Sharia proposition with lifestyle strategy launch

Move comes in partnership with HSBC Asset Management and Franklin Templeton

Jonathan Stapleton
clock 19 May 2026 • 3 min read