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PensionsSavers55-60'sGovernment Pension ReformGeorge Osborne

Pension Pots

Savers are spending their pensions earlier than ever as people in their fifties and early sixties take advantage of the Government’s pension reforms.

Information provided by 95 of Britain’s largest pension companies indicates that savers aged between 55 and 60 are now the most likely of any age group to access their pots.

In April George Osborne gave the over-55s unlimited access to their savings, ending the need to buy an annuity.

Approximately 35 per cent of those withdrawing money are 60 and under, up from around 22 per cent before the reforms were introduced, analysis of the data showed. Just under 35 per cent are aged 61-64 and 23 per cent are 65-69. The remaining 7 per cent are 70 or over.

The latest statistics from the Financial Conduct Authority regulator found almost 2,000 people a day withdrew money from pensions between July and September last year.

In two-thirds of cases savers encashed the entire amount.

People are typically taking out less than £30,000. Around 88 per cent of withdrawals were below the threshold and 57 per cent were below £10,000.