Commenting on today’s flexible pension payment data from HMRC
Wednesday 27 January 2016
“The figures, while not complete, suggest the initial rush to access pensions money may be settling down. As well as a decrease in the number of people making withdrawals, the average payment per individual is significantly lower now at less than £12,000 based on today’s figures, in comparison to the first three months of the pension freedoms being available, when the average was over £18,500 per person. It’s too early to suggest we might be reaching the point where demand has finally stabilised but it’s an encouraging trend that suggests people are not rushing to encash their funds, just because they can.“
Fiona continued: “Of more interest would be the number of people who are paying the upfront tax for lump sum withdrawals and whether the guidance service that the Government put in place is adequate in informing people of the penalties that apply. Royal London raised the potential lack of awareness of the tax implications as initial research of our customers showed that many had already made up their minds and do not necessarily ask for advice or guidance.”
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About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with Group funds under management of £83.1 billion. Group businesses serve around 5.3 million policyholders and employ 2,958 people. (Figures quoted are as at 30 September 2015).
The Group is currently moving all of its UK and Ireland life, pension and investment businesses under a new version of the Royal London brand. The Group's independent wrap platform will remain branded Ascentric.