Home » Uncategorised »
Cashing out of full pension funds drops
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
New figures have suggested that despite new pension laws coming into effect two months ago, the number of retirees looking to utilise their savings for property appears to have slowed. Many it appears are taking advantage of a more widespread range of options,
Drop
Data from Scottish Widows has shown that in the month from April, there has been a 72% drop in requests for full pension withdrawals. The firm said that about 20% of its customers were eligible to access their pension under the new regulations. The average amount of money being cashed out in full by these consumers was £20,000, with 85% of requests for totals less than £30,000. [1]
Different figures from Fidelity Worldwide Investment suggest that the majority of its direct customers are only interested in the tax-free cash available under the new laws. Their figures show that cashing out in full totalled just 6% of retirement enquiries.10% of enquiries to Fidelity’s customer call line were to discuss options. Scottish Widows also said that despite requests for full cashouts of pension funds slowing, more customers are looking for more detailed discussion over their new options, showing the more open-minded attitude of retirees.[2]
Cashing out of full pension funds drops
Additionally, the firm has indicated that it has seen more of its customers seeking advice from Pension Wise, with a third of customers taking this option in April.
Robert Cochran, pensions development manager at Scottish Widows, said that, ‘although our data has shown an increase in Pension Wise awareness, there is still work to do in closing the knowledge gap and encouraging people to use the service.’[3]
[1] http://www.ftadviser.com/2015/06/02/pensions/personal-pensions/number-of-retirees-looking-to-cash-out-pension-falls-CPFp5i2FnCO6LlzI06LtOJ/article.html
