Pensions - Articles - Statistics on pension freedoms show what the new normal is

 The figures show that in Q4 2017 around 200,000 individuals withdrew money flexibly from their pension pot, and that a total of around £1.5 billion was withdrawn. The quarterly rate of withdrawal has been between £1.5 billion and £1.6 billion in five of the last six quarters. A total of £15.7 billion has been withdrawn since the policy was introduced in April 2015.

 Commenting, Steve Webb, Director of Policy at Royal London said: ‘These new figures show that withdrawals under pension freedoms are now settling down to a steady level. Roughly 200,000 people are using the freedoms each quarter and are withdrawing a steady £1.5 billion per quarter. This is very much the new normal and suggests that a significant number of those at or in retirement continue to value the flexibility given by the new legislation. However, it remains important that individuals take expert advice to make sure that the withdrawals from their pension fund are sustainable in the long-term’.

 Pensions_Flexibility_Jan_2018.pdf