Thousands of savers face a pension shortfall, warns Zurich

'Pensions could veer off course'

clock • 1 min read

Thousands of savers taking tax-free lump sums ahead of retirement are at risk of a pensions shortfall in later life due to neglecting their remaining pot, Zurich has warned.

  Zurich said tens of thousands of savers that have accessed their pension for the 25% tax-free lump sum are unaware of what to do next and are leaving their remaining pension running on ‘auto-pilot'. The Financial Conduct Authority's (FCA) latest figures showed an estimated 60% of pots, where a tax-free lump sum has been paid out, have had no further income taken. Of the 660 people Zurich surveyed, more than two fifths of savers who have gone into drawdown to access their cash have left the remaining pot untouched.  The research, conducted with YouGov in October 2018, also foun...

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