Home Brand News One million UK savers embrace their freedoms

One million UK savers embrace their freedoms

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HMRC have published their latest figures on the flexible withdrawals from pensions.Today’s figures report that the number of savers who have embraced their freedoms now exceeds one million (1.04 million).

A record-breaking sum of £7.83bn was withdrawn in 2018, up from £6.54bn in 2017. It is reported that there have been 5.49 million individual withdrawals since the pension freedoms were introduced in Q2 2015.

Commenting, Alistair McQueen, Head of Savings & Retirement at Aviva said:

“The pension freedoms show no sign of losing their popularity. More than one million savers have embraced their new freedoms since 2015, and a record £7.83bn of taxable payments were withdrawn in 2018.

“There is however no evidence of an uncontrolled “dash-for-cash”, as was feared by some when the freedoms were introduced. The 2018 figure of £7.83bn needs to be seen in the context of a total private pension wealth in the UK of approximately £5,000bn. Withdrawal payments have also consistently averaged less than £4,000 since summer 2017, showing little evidence of savers rushing to buy Lamborghinis!

“These freedoms are attractive to younger savers too, with Aviva research finding that one third (33%) of under-35s believe this flexible access encourages them to put more money towards their pension.” 

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