Pensioners pause for breath after the dash for cash

More pension savers are getting their hands on their cash, says David Prosser. But they're opting for smaller sums.

818-gran-1200

Overexcited pensioners now seem to be calming down
(Image credit: sturti)

More than 158,000 individuals withdrew £1.56bn from their pension savings under the pensions freedom reforms during the third quarter of this year, according to new official data from HM Revenue & Customs (HMRC). But while the figures show a substantial increase in the numbers of people taking advantage of the reforms in the second quarter of last year, immediately after the rules were changed, just 84,000 people took flexible payments from their savings the figures also suggest people are taking much smaller sums.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.