Over £2 billion accessed flexibly from pensions in Q2 2018, a new record (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/730397/Pensions_Flexibility_July_2018.pdf)
Almost £20 billion has now been withdrawn since the freedoms were launched in April 2015
Over 4 million flexible payments made to over 1 million individuals
Average withdrawal per person hits £8,595, almost £1,000 higher than the previous quarter but £700 lower than Q2 2017
Tom Selby, senior analyst at AJ Bell, comments:
“The popularity of the pension freedoms shows no signs of abating, with almost £20 billion now flexibly accessed since the reforms launched in April 2015.
“The money involved is truly staggering and the changes are likely to have given a short-term boost to the UK economy, with many over 55s choosing to spend more money today rather than leave it invested in their retirement fund.
“The good news is average withdrawals per person are not spiralling out of control. In fact, while the average withdrawal is almost £1,000 higher than in Q1 2018, it is down by about £700 on the same quarter in 2017.
“It’s hard to tell the extent to which such withdrawals are sustainable without a broader picture of individuals’ finances. Many will have seen the value of their drawdown pot boosted by the stockmarket bull run - the real test of the reforms will come when markets inevitably hit the skids.”
Source: HMRC
Source: HMRC