Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2016
10

Hundreds of thousands cashing in on pension freedoms

Open-access content Wednesday 26th October 2016

Pension freedoms result in 158,000 people having access to £1.54bn flexibility from their pension pots in last quarter according to HMRC figures released today.

2


In the previous quarter £1.77 was withdrawn from 159,000 people, bringing the total accessed to £7.65bn since the pension flexibility rules took effect from 6 April 2015.

There have been 1.1 million payments made since then, with research from the Association of British Investors showing that people are making sustainable long-term retirement decisions.

The Economic Secretary to the Teasury, Simon Kirby, said: "Today's figures prove that allowing people to do what they wish with their hard-earned savings, whether it's buying an annuity or taking a cash lump sum, is the right thing to do.

"The freedoms remain a popular choice as people consider the different ways to fund their retirement."

Individuals are also benefiting from the government's free impartial pension's guidance service, Pension wise, which has had nearly 90,000 appointments to date.

In addition it was announced earlier this year that the Financial Conduct Authority (FCA) would have the power and duty to cap early exit fees, allowing earlier access to Pension Wise, and the building of a Pensions Dashboard prototype by April 2017.

The FCA's consultation paper looked at the impact on firms, estimating the loss of revenue as a result of the implementation of cap over a four-year period.

It stated: "We recognise that costs could continue beyond this period for some firms.

"Where this is the case, firms may need to take this into account in their business planning."

"While we recognise that firms may also experience revenue losses in respect of other charges attached to these policies, we consider these to be of only minimal significance."

HMRC statistics cover partial or full withdrawal of the pension pot, taking money from a flexible drawdown account or buying flexible annuity.

Figures for the current quarter (October - December 2016) will be published in January 2017.

This article appeared in our October 2016 issue of The Actuary.
Click here to view this issue
Filed in:
10

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Motor Pricing Manager

London, England
£60000 - £80000 per annum
Reference
120910

Mixed Reserving & Capital Role

London, England
£80000 - £100000 per annum
Reference
120909

Risk Management Actuary (Capital Modelling)

England, London
£70000 - £90000 per annum
Reference
120908
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200