The proportion of pots accessed with a value of £250,000 or more also increased, reaching 9%, compared with 7% in the previous year, and 5% in the year ending 31 March 2024.
Annuity purchases increased by 13% to 100,144 in the year ending 31 March 2026, up from 88,430 in the previous year. The total number of pension plans accessed for the first time increased by 7% to 1,047,008 compared with 974,990 in the previous year.
Damon Hopkins, Head of Workplace Savings at Broadstone, commented: “As DC pots grow, particularly against an uncertain macroeconomic background, so does the complexity of how and when savers use their pension savings.
“The £91 billion accessed from pension pots over the year represents a significant increase in the amount of pension wealth being used, rising by over a fifth compared with the previous year. While we would expect the money accessed from pensions to grow as more generations with defined contribution pensions reach retirement, the scale of the increase suggests that changing behaviours and decisions around how people use their pension wealth are also playing an important role.
“Recent changes to inheritance tax rules may be influencing how people think about their pension savings, with some retirees reassessing the balance between preserving pension wealth for future generations and using those assets to support their own retirement.
“At the same time, the rise in annuity purchases shows that certainty remains highly valued. After years where flexibility was the dominant focus, more people are now considering how guaranteed income can provide greater confidence and stability throughout retirement, especially as rates have risen markedly in recent times.
“With greater choice comes greater responsibility, and ensuring people have access to the right guidance and solutions will be critical as retirement decisions become increasingly complex.”
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