Official forecasters baffled by continuous pension freedom tax revenues

£400m added in tax revenues

Hannah Godfrey
clock • 1 min read

Pension freedoms are as popular as ever, with those who first took advantage of the freedoms in 2015 still withdrawing funds at a consistent rate, according to data from the Office for Budget Responsibility (OBR).

The OBR said it expected withdrawals from those who initially took advantage of the freedoms to have "diminished by this stage". So far the policy has generated more tax revenue than was first expected. The OBR said between 2015/16 and 2018/19 the policy raised £2bn in tax - two-thirds more than was originally forecast. As the policy has remained popular, the OBR has added an extra £400m per year to its estimate of additional tax revenues from pension freedom. Former pensions minister Steve Webb, who is now partner at pensions consultancy LCP, said: "These figures show very clearly th...

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 Retirement

The FCA's decumulation challenge: Can UK REITs help deliver sustainable retirement income?

The FCA's decumulation challenge: Can UK REITs help deliver sustainable retirement income?

A look at the three Ss of retirement income

James Peel
clock 04 August 2026 • 7 min read
What the decumulation shift means for advice firms, and how the best are responding

What the decumulation shift means for advice firms, and how the best are responding

'Technology is part of this picture in ways that are worth being honest about'

Andy Zanelli
clock 14 July 2026 • 4 min read
Millions make retirement trade-offs to fund children and grandchildren's university costs

Millions make retirement trade-offs to fund children and grandchildren's university costs

Includes many delaying retirement

Jen Frost
clock 03 June 2026 • 3 min read