£2.23 billion in pension withdrawals made in last quarter of 2019

03 February 2020

HMRC has confirmed that in quarter four of 2019, there were a total of 828,000 pension withdrawals made by 327,000 individuals, totalling a bill of £2.23 billion.

This meant an impressive 18% increase from the £1.9 billion withdrawn in the last quarter of 2018 and an even larger 24% increase in the number of individuals making withdrawals, as 264,000 was the figure reported in the same period of 2018.

Since April 2016, when it became mandatory to report pension withdrawal figures, the average figure of £11,132 taken has fallen by 39%, as the average withdrawal amount for quarter four of 2019 was £6,800.

The pension freedom tax rules allow individuals who have reached the required minimum pension age, currently set at 55, to access their pension savings early when they are members of defined contribution pension schemes. There are several options for members who wish to take their pension benefits – they could be taken as one or more payments a year for a number of years, several payments a year over a shorter timeframe or the full value can be withdrawn in one payment. The new rules have been in place since April 2015.

 


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