The data shows:
UK consumers have withdrawn £10.8 billion from pensions during the first two years of the pension freedoms
£1.59 billion was withdrawn in Q1 2017
The average withdrawal per person continues to fall and now stands at £9,034 – less than half the average withdrawal in Q2 2015, the first quarter of pension freedoms (see table below)
Tom Selby, senior analyst at AJ Bell, comments:
"The pension freedoms have clearly been hugely popular, with HMRC figures suggesting well over £10bn has been accessed flexibly in the first two years of the reforms. Given industry reporting was optional in 2015/16, it's likely the actual figure is significantly higher.
"It is interesting to note that the average withdrawal per person continues to trend downwards, standing at just over £9,000 in Q1 2017. Hopefully this is indicative of savers managing their retirement incomes sensibly and making withdrawals at levels that will be sustainable over the long term."
Period | Average withdrawal per person |
Q2 2015 | £18,571 |
Q3 2015 | £14,444 |
Q4 2015 | £11,940 |
Q1 2016 | £11,081 |
Q2 2016 | £11,132 |
Q3 2016 | £9,747 |
Q4 2016 | £9,630 |
Q1 2017 | £9,034 |