Pensions - Articles - Broadstone comments on £1bn paid to 60,000 pension savers

 “The announcement from the Government yesterday that £1bn has already been paid out to 60,000 pension savers since 6 April 2015 is one that should worry us.

 “It may only be a blip in the billions invested in pensions but in just over two months the mass exodus from pensions has begun, and begun with quite a bang.

 “The numbers are not yet fully explained, and I have my doubts over their veracity as the reporting measures to capture them have barely been released long enough to capture anything. However, on the assumption they are true and with the reporting issues this could mean the real number is double that amount.

 “I do hope these people have taken some advice and taken a considered view on how long they expect to live, the amount they want to pay in tax and what would be the most appropriate use for the money.

 “Many of these people would have been those chomping on the bit for April to come round but as the news spreads that friends and family are spending their pension the pace is sure to increase over the coming months.”