The popularity of the pension freedoms has reached record levels. More people took advantage of the freedoms in Q2 2017 than in any quarter since they were introduced in Q2 2015. Aviva comments
Commenting on today’s pension freedoms statistics1, Alistair McQueen, Head of Savings & Retirement at Aviva said:
“As a result of the popularity of the pension freedoms, the spring 2017 Budget estimated that the freedoms would raise nearly three times more tax in their first two years than had originally been planned2. Today’s record-breaking numbers may raise this figure even higher.
“Perspective is needed when examining today’s figures. More than £10bn has been withdrawn from pension savings since the freedoms were introduced. This is a big number, but it should be seen in the context of the £4,459bn that was estimated to be held in pensions between July 2012 and July 20143. The vast majority of savers have resisted the temptation to ‘dash for cash’.
“Those taking advantage of the freedoms, however, need support to ensure the actions they take are in their best long term interests. A good understanding of their income and needs in later life is crucial. For example, new research from Aviva has identified that a quarter (25%) of people expect to rely on discounts to make retirement affordable, but many overestimate what they will get4. Careful planning is required in order to avoid expensive disappointment in retirement.”
ENDS
Sources:
(1) https://www.gov.uk/government/statistics/flexible-payments-from-pensions
(2) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/597335/PU2055_Spring_Budget_2017_web_2.pdf – Page 49
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Notes to Editors:
- Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
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