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Press comment: Latest stats show apocalypse warnings on pension freedoms were over the top

30/01/2020

If you are covering the latest flexible payments from pensions statistics released by HMRC, please find below a comment from Ian Browne, pensions expert at Quilter:

Ian Browne“Figures from HMRC tell a narrative around pensions freedoms that George Osborne would be happy with – it is working as it supposed to. While nearly £33bn has been withdrawn from pensions thanks to pension flexibility, those withdrawals appear to be at a sustainable level. There are more people taking smaller withdrawals.

“Concerns that pension freedoms signaled the apocalypse of responsible retirement saving and income in the UK now seem over the top. However, it has not been a straight path for pension freedoms and we are still trying to combat the tsunami of challenges that this new era has presented.

“Scammers continue to prey on vulnerable older people and it would be naïve to point the finger of blame at pension freedoms. This is key concern of the new Chair of the Work and Pensions Select Committee, Stephen Timms, and we expect him to look beyond pension freedoms to see if the government needs to do more.  

“On top of this Government also need to tackle the clunky pension taxation system. Savers are forced to claim back hundreds of millions of pounds in "emergency tax" last year, more than £3,000 per person, because of the way HMRC’s PAYE systems work.

“At the same time the regulator has substantial concerns about how people invest when they are starting to take their retirement income. The amount and frequency of withdrawals from a pension pot can make a dramatic impact to how long your funds will last.”

 

Year

Quarter

No. of Payments

No. of individuals

Total value of payments

Av value per payment

Av No. of payments per individual

Av value paid to individuals

2015

Q2

121,000

84,000

1,560,000,000

12,893

1.440

18,571

2015

Q3

130,000

81,000

1,170,000,000

9,000

1.605

14,444

2015

Q4

123,000

67,000

800,000,000

6,504

1.836

11,940

2016

Q1

142,000

74,000

820,000,000

5,775

1.919

11,081

2016

Q2

296,000

159,000

1,770,000,000

5,980

1.862

11,132

2016

Q3

324,000

158,000

1,540,000,000

4,753

2.051

9,747

2016

Q4

393,000

162,000

1,560,000,000

3,969

2.426

9,630

2017

Q1

381,000

176,000

1,590,000,000

4,173

2.165

9,034

2017

Q2

403,000

200,000

1,860,000,000

4,615

2.015

9,300

2017

Q3

435,000

198,000

1,590,000,000

3,655

2.197

8,030

2017

Q4

454,000

198,000

1,504,000,000

3,313

2.293

7,596

2018

Q1

500,000

222,000

1,700,000,000

3,400

2.252

7,658

2018

Q2

574,000

264,000

2,270,000,000

3,955

2.174

8,598

2018

Q3

585,000

258,000

1,960,000,000

3,350

2.267

7,597

2018

Q4

628,000

264,000

1,900,000,000

3,025

2.379

7,197

2019

Q1

648,000

284,000

2,060,000,000

3,179

2.282

7,254

2019

Q2

760,000

336,000

2,750,000,000

3,618

2.262

8,185

2019

Q3

778,000

327,000

2,370,000,000

3,046

2.379

7,248

2019

Q4

828,000

327,000

2,230,000,000

2,693

2.532

6,820

 

For more information contact

Gregor Davidson020 7002 716407917 522784gregor.davidson@quilter.com
Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.