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 Aegon pensions director Steven Cameron said savers remain at risk, with money withdrawn during a downturn representing a larger proportion of the pension pot.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

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