More than 160,000 people took annual withdrawals of more than 8% from their drawdown pot, according to the latest data from the UK financial regulator.
The Financial Conduct Authority (FCA) revealed its analysis of the latest retirement income data between April 2020 and March 2021, finding that while most of these high withdrawal rates were largely from smaller pensions, 37,000 came from pension pots worth £100,000 or more. It is unclear from the data whether those taking a high rate of drawdown have other pension pots or not, which may affect the overall withdrawal rate in the context of their whole pension portfolios. However, the high withdrawal rates have been described as as "a worrying trend," by Helen Morrissey, senior pensions ...
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