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Commenting on today’s pension flexibility statistics showing an increase in the number of people accessing their pensions flexibly and data showing HMRC has repaid £39.4m between July –September 2020 to people who overpaid tax when flexibly accessing their pensions |
Helen Morrissey, pension specialist at Royal London, said: “The pension freedoms have been with us for several years now and it is absurd that this overly complex system remains in place. HMRC overtaxes people who then need to fill out any one of three different forms to reclaim this money back. In the last quarter we saw a rise in the number of people looking to access their pensions flexibly -this may well be due to the current COVID-19 pandemic. The last thing they need at such a difficult time is to be over-taxed and then have to reclaim it - it is a system in urgent need of reform.” |
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