HMRC figures show plunging pension freedom withdrawals

18% year-on-year decrease

clock • 2 min read

A total of 340,000 people withdrew £2.3bn in flexible payments from their pensions in the second quarter of 2020, according to HM Revenue & Customs (HMRC).

Figures released this morning (31 July) showed an 18% decrease year-on-year from the £2.8bn in withdrawals seen in Q2 2019. The July 2020 flexible payments from pensions statistics also showed a 1% increase in the number of people withdrawing cash compared to the same period in 2019. The average value of each withdrawal has decreased by 18% to £6,700 from £8,200 compared to last year, however. Aegon pensions director Steven Cameron said savers remain at risk, with money withdrawn during a downturn representing a larger proportion of the pension pot. "That means the fund doesn't hav...

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

The haves and the have nots: Transitional pension arrangements

The haves and the have nots: Transitional pension arrangements

'It's when we come to transitional arrangements that things get trickier'

Lisa Webster
clock 28 August 2024 • 3 min read
The LTA has been abolished but life isn't any simpler for advisers

The LTA has been abolished but life isn't any simpler for advisers

A whistlestop tour of post-LTA pension rules

Keeley Paddon
clock 16 August 2024 • 6 min read
Why pension savers need more education on fees

Why pension savers need more education on fees

Pension investments can come with radically different fees

Ahmed Bawa
clock 14 August 2024 • 4 min read