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 Aegon pensions director Steven Cameron said savers remain at risk, with money withdrawn during a downturn representing a larger proportion of the pension pot.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

Reeves looking to cap salary sacrifice contributions to £2,000 - reports

Reeves looking to cap salary sacrifice contributions to £2,000 - reports

Chancellor has 'decided against' cutting pension lump-sum withdrawals

Jonathan Stapleton
clock 10 November 2025 • 4 min read
MPs warned against changes to salary sacrifice pensions

MPs warned against changes to salary sacrifice pensions

SPP says scrapping salary sacrifice would lead to reduction in employees’ take home pay

Martin Richmond
clock 07 November 2025 • 4 min read
'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'Selecting a SIPP provider should require a strategic inquiry into their fee structures'

James Floyd
clock 05 November 2025 • 4 min read