More than 20,000 million euros retired in three years as workers in money with pension freedoms, show official data

Savers withdrew more than £ 21.7billion from their private pensions in the three years since the dramatic rules changed, the latest taxon show figures.

In the period of three months between July and September 2018, 258,000 people made 585,000 withdrawals, now meaning more than 1.3 million British took advantage of pension freedoms.

Below, chancellor George Osborne announced the reforms in the April 2015 budget, which allows those aged 55 and over to have the freedom to access most of their pension savings as they wished, instead of having to buy a life annuity or put money in retirement.

A fourth part is "non-compensated sum of pension funds" that can be exempt from taxes.

Lot of Lambos: former Minister of Pensions, Steve Webb, said that those who took advantage of the new rules could spend their savings on Lamborghinis if they wanted

Lot of Lambos: former Minister of Pensions, Steve Webb, said that those who took advantage of the new rules could spend their savings on Lamborghinis if they wanted

Lot of Lambos: former Minister of Pensions, Steve Webb, said that those who took advantage of the new rules could spend their savings on Lamborghinis if they wanted

He directed the former Pension Minister and is now the uncle of agony of money pensions, Steve Webb, to comment that pensioners could spend their savings on a Lamborghini if ​​they so wish, saying it was "their choice."

However, while the total value of withdrawals from the April 2015 changes exceeded the 21 billion pounds sterling, it does not seem that savers have splashed the money recently.

The average retirement per person in the last quarter was £ 7,597, the lowest level since HMRC began recording them – almost enough for a brand new Dacia Sandero, the cheapest car available to buy.

One analyst commented that he suggested that most people were "taking a pragmatic and controlled approach to how they manage their pension savings," with the withdrawal per person pulling down from £ 18,500 just after the changes came into play.

Pension reforms: About 200,000 people have been removed each quarter during the last year and a half

Pension reforms: About 200,000 people have been removed each quarter during the last year and a half

Pension reforms: About 200,000 people have been removed each quarter during the last year and a half

The data separated by HMRC also revealed that they would reimburse a record 38 million pounds in paid emergency taxes to 18,000 people in the third quarter of this year, with an average repayment of £ 2,000.

This means that more than £ 372 million has been reimbursed by the tax since the pension changes three years ago.


Tom Selby, senior analyst at AJ Bell, says: "One of the real spines in the new rules is the tax treatment applied to people who take retirement from their first pension freedoms.

"In most cases an emergency rate will be applied to these withdrawals, which means that people pay more taxes than they should do.

"This can be recovered, but it is a problem and does not help the fact that the withdrawal will be less than expected.

"Earlier this week HMRC reported that a record of £ 38 million of this tax-free tax was recovered by investors in the fourth quarter, but it seems that it has no intention of changing the rules."

There were fears when the reforms were announced that savers would spend all their money at the same time. However, the average amount withdrawn per person decreased steadily since 2015

There were fears when the reforms were announced that savers would spend all their money at the same time. However, the average amount withdrawn per person decreased steadily since 2015

There were fears when the reforms were announced that savers would spend all their money at the same time. However, the average amount withdrawn per person decreased steadily since 2015

The statistics on freedom of pensions show that the number of retired people ran from 84,000 in the second quarter of 2015, up to now they exceed 200,000 people in each of the first three quarters of 2018.

The second quarter of this year saw the largest number of retired people, 264,000 and the highest total value of payments since the 2015 liberties.

More than £ 2,800 million were withdrawn by savers between April and June this year, while £ 1.96 trillion were eliminated within three months.

The value of the payments in each year follows a consistent tendency, the increase of the withdrawals towards the beginning of the year and the losses in the remaining three quarters of the year.

The number of people who make retirements has also been consistent, approximately 200,000 have done so every three months since April 2017.

Tom Selby adds: "The government recently updated its estimate for retirement tax removal this year for a whopping $ 400 million and now we can see why.

"The public points to the flexibility given by the new rules and as more people have reached the age of 55, we can expect these figures to continue increasing."

Canadian Life Life technical director Andrew Tully told financial planning today: "Smaller pensions are being withdrawn altogether, while people with larger pensions are making multiple withdrawals in a fiscal year, suggesting they are treat your pension more like a bank account.

"The Treasury is enjoying a tax bonanza, since the forecasts that paying the income tax will be a natural curb in the withdrawals it did not let people simply take the money."

However, one expert warned that the danger lies.

Ian Browne de Quilter said: "These figures can begin to tell a different story soon, as there are freedoms for a new set of challenges due to increased investor indulgence during market volatility.

"Now, the last number of months has seen the dramatic changes in the market and it is understandable that people are nervous about their future retirement, particularly if you are just around the corner, or indeed here.

"However, their important investments do not worry and they make something uncomfortable, since they take money from their pension or change their investment strategy without thinking carefully.

"Obtaining financial advice, especially for those invested and within the five years of retirement, is crucial."

Leave a comment

Your email address will not be published. Required fields are marked *

More than 20,000 million euros retired in three years as workers in money with pension freedoms, show official data

Savers withdrew more than £ 21.7billion from their private pensions in the three years since the dramatic rules changed, the latest taxon show figures.

In the period of three months between July and September 2018, 258,000 people made 585,000 withdrawals, now meaning more than 1.3 million British took advantage of pension freedoms.

Below, chancellor George Osborne announced the reforms in the April 2015 budget, which allows those aged 55 and over to have the freedom to access most of their pension savings as they wished, instead of having to buy a life annuity or put money in retirement.

A fourth part is "non-compensated sum of pension funds" that can be exempt from taxes.

Lot of Lambos: former Minister of Pensions, Steve Webb, said that those who took advantage of the new rules could spend their savings on Lamborghinis if they wanted

Lot of Lambos: former Minister of Pensions, Steve Webb, said that those who took advantage of the new rules could spend their savings on Lamborghinis if they wanted

Lot of Lambos: former Minister of Pensions, Steve Webb, said that those who took advantage of the new rules could spend their savings on Lamborghinis if they wanted

He directed the former Pension Minister and is now the uncle of agony of money pensions, Steve Webb, to comment that pensioners could spend their savings on a Lamborghini if ​​they so wish, saying it was "their choice."

However, while the total value of withdrawals from the April 2015 changes exceeded the 21 billion pounds sterling, it does not seem that savers have splashed the money recently.

The average retirement per person in the last quarter was £ 7,597, the lowest level since HMRC began recording them – almost enough for a brand new Dacia Sandero, the cheapest car available to buy.

One analyst commented that he suggested that most people were "taking a pragmatic and controlled approach to how they manage their pension savings," with the withdrawal per person pulling down from £ 18,500 just after the changes came into play.

Pension reforms: About 200,000 people have been removed each quarter during the last year and a half

Pension reforms: About 200,000 people have been removed each quarter during the last year and a half

Pension reforms: About 200,000 people have been removed each quarter during the last year and a half

The data separated by HMRC also revealed that they would reimburse a record 38 million pounds in paid emergency taxes to 18,000 people in the third quarter of this year, with an average repayment of £ 2,000.

This means that more than £ 372 million has been reimbursed by the tax since the pension changes three years ago.


Tom Selby, senior analyst at AJ Bell, says: "One of the real spines in the new rules is the tax treatment applied to people who take retirement from their first pension freedoms.

"In most cases an emergency rate will be applied to these withdrawals, which means that people pay more taxes than they should do.

"This can be recovered, but it is a problem and does not help the fact that the withdrawal will be less than expected.

"Earlier this week HMRC reported that a record of £ 38 million of this tax-free tax was recovered by investors in the fourth quarter, but it seems that it has no intention of changing the rules."

There were fears when the reforms were announced that savers would spend all their money at the same time. However, the average amount withdrawn per person decreased steadily since 2015

There were fears when the reforms were announced that savers would spend all their money at the same time. However, the average amount withdrawn per person decreased steadily since 2015

There were fears when the reforms were announced that savers would spend all their money at the same time. However, the average amount withdrawn per person decreased steadily since 2015

The statistics on freedom of pensions show that the number of retired people ran from 84,000 in the second quarter of 2015, up to now they exceed 200,000 people in each of the first three quarters of 2018.

The second quarter of this year saw the largest number of retired people, 264,000 and the highest total value of payments since the 2015 liberties.

More than £ 2,800 million were withdrawn by savers between April and June this year, while £ 1.96 trillion were eliminated within three months.

The value of the payments in each year follows a consistent tendency, the increase of the withdrawals towards the beginning of the year and the losses in the remaining three quarters of the year.

The number of people who make retirements has also been consistent, approximately 200,000 have done so every three months since April 2017.

Tom Selby adds: "The government recently updated its estimate for retirement tax removal this year for a whopping $ 400 million and now we can see why.

"The public points to the flexibility given by the new rules and as more people have reached the age of 55, we can expect these figures to continue increasing."

Canadian Life Life technical director Andrew Tully told financial planning today: "Smaller pensions are being withdrawn altogether, while people with larger pensions are making multiple withdrawals in a fiscal year, suggesting they are treat your pension more like a bank account.

"The Treasury is enjoying a tax bonanza, since the forecasts that paying the income tax will be a natural curb in the withdrawals it did not let people simply take the money."

However, one expert warned that the danger lies.

Ian Browne de Quilter said: "These figures can begin to tell a different story soon, as there are freedoms for a new set of challenges due to increased investor indulgence during market volatility.

"Now, the last number of months has seen the dramatic changes in the market and it is understandable that people are nervous about their future retirement, particularly if you are just around the corner, or indeed here.

"However, their important investments do not worry and they make something uncomfortable, since they take money from their pension or change their investment strategy without thinking carefully.

"Obtaining financial advice, especially for those invested and within the five years of retirement, is crucial."

Leave a comment

Your email address will not be published. Required fields are marked *