Retirement savers who encash their pots using pensions freedom have missed out on potential collective investment returns totaling £2bn, LCP analysis suggested.
Pensions freedoms, introduced in 2015, allows over 55s to access their retirement funds. LCP said a trend had emerged where people encash their pension pots only to shift the money into cash ISAs or other low interest accounts meaning they lose out on potential investment returns. LCP suggested the problem could be tackled by allowing people aged 55 and over to access their tax-free lump sum while leaving the rest of the fund invested. LCP looked at official figures from the Financial Conduct Authority (FCA), which showed that, between April 2015 and March 2020, a little over 1.7m peo...
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