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Pension Freedoms

Much has been written about the new regulations surrounding withdrawing funds from pension pots but up until now there has been little firm evidence in respect of the exercising of pension choice. Now the Association of British insurers (ABI) has come out with six facts to mark the first six months following pension reform. According to the ABI in the first three months providers paid out almost £2.5b in cash and income drawdown payments. Whilst this sum appears significant, it is in fact less than 1% of the total pension funds held by over 55-year-olds.

Interestingly, in 95% of cases where savers accessed a lump sum, they withdrew the entire amount available. Commenting on the figures, ABI director Yvonne Braun said “Giving individuals’ greater power over their pension pots should encourage more people to put money aside for their retirement.”

If you require assistance with planning for income in retirement, please do not hesitate to contact the team at Beckworth who will be able to guide you through this complex area.