Record full pension withdrawals spark tax warning

‘Accessed and emptied’ pensions up 16% year-on-year

Jenna Brown
clock • 2 min read

The number of people withdrawing their entire pension pot has increased by 16% year-on-year, a figure Just Group warned could mean many were paying unnecessary tax.

It said 395,237 pensions were "accessed and emptied" in 2021/22, nearly 16% higher than the previous year and the highest recorded since full withdrawal was permitted, according to its analysis of Financial Conduct Authority figures. It added this included 41,819 pensions fully withdrawn that were worth more than £30,000. Some 3,043 were valued at between £100,000 to £250,000 and 533 were valued at more than £250,000. The provider warned many thousands of people were "being stung for unnecessary tax". It explained earnings in excess of the personal allowance are subject to income t...

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