Cost of living crisis drives pensions freedom flexible withdrawals

Total flexible withdrawals top £72bn since April 2015

Jenna Brown
clock • 2 min read

People taking advantage of pensions freedom rules have withdrawn a total of £72.2bn from retirement funds since April 2015, with the first two quarters of 2023 seeing a pronounced surge in activity, according to analysis of latest HM Revenue & Customs (HMRC) figures.

Canada Life said that in the second quarter of this year 567,000 people withdrew a total of £4bn representing a 17% increase in the value of payments compared to the same period last year. In 2022/23 £12.9bn was withdrawn, up from £11.2 bn in 2021/22 - this compared to £9.2bn in 2020/21. Canada Life retirement income director Nick Flynn said the "floodgates have well and truly opened" as record amounts were withdrawn from pensions. "While there is no need to hit the panic button, I hope these people have a backup plan to be able to generate a wage in retirement," he said. "The curr...

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