Retirees cash out small pension pots, FCA figures reveal

Retirees raid their pension pots and fall out of love with annuities, FCA data shows. Should you take money out from your pension pot?

Stacks of coins growing in flowerpots
(Image credit: Getty Images)

An increasing number of over-55s are taking out all the cash from their pension pots rather than buying an annuity or drawdown, official figures show.

The Financial Conduct Authority's (FCA) latest Retirement Income update showed more than half of all pension pots are cashed out in full.

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Kalpana Fitzpatrick

Kalpana is an award-winning journalist with extensive experience in financial journalism. She is also the author of Invest Now: The Simple Guide to Boosting Your Finances (Heligo) and children's money book Get to Know Money (DK Books).

Her work includes writing for a number of media outlets, from national papers, magazines to books.

She has written for national papers and well-known women’s lifestyle and luxury titles. She was finance editor for Cosmopolitan, Good Housekeeping, Red and Prima.

She started her career at the Financial Times group, covering pensions and investments.

As a money expert, Kalpana is a regular guest on TV and radio – appearances include BBC One’s Morning Live, ITV’s Eat Well, Save Well, Sky News and more. She was also the resident money expert for the BBC Money 101 podcast .

Kalpana writes a monthly money column for Ideal Home and a weekly one for Woman magazine, alongside a monthly 'Ask Kalpana' column for Woman magazine.

Kalpana also often speaks at events. She is passionate about helping people be better with their money; her particular passion is to educate more people about getting started with investing the right way and promoting financial education.