General Insurance Article - Just Retirement comment on FCA data

 New figures from the FCA show a doubling in the number of pensions policies being accessed in the first three months of the new rules compared to two years ago, with more than two-thirds of policies accessed by customers of the 15 biggest pension companies being fully converted to cash and one-quarter likely to have taken at least some cash. Most of the remaining policies were converted into guaranteed income for life.

 "While we recognise there was always going to be a spike due to pent up demand, these figures are breath-taking when you consider the bulk of that money was built up to help people pay the bills in retirement," said Stephen Lowe. "We are concerned that some of those taking the cash may be seeing the £151 a week flat rate State Pension as their safety net without realising only a minority will get anywhere near that figure when it is introduce next April."

 "The FCA will be releasing quarterly figures on cash-in rates for pensions and we will be monitoring that closely because such a high drain away from pensions, which offer many tax advantages to people investing money, is a clear warning sign that there may be trouble ahead. We don't know what other pension or savings arrangements these people had or what they plan to do with the cash. But even if they are choosing to bank it rather than spend it, it still doesn't bode well for their future standard of living."