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16/12

Pension Income is for life, not just for Christmas – Old Mutual Wealth

The financial demands of Christmas do not appear to have sparked additional mass pension withdrawals, according to a recent survey[1] undertaken by YouGov on behalf of leading wealth manager, Old Mutual Wealth.

Despite early concerns around reckless spending of savings, when asked whether they planned to, or had already withdrawn money from their defined contribution savings to help pay for Christmas, just four percent of those aged 55 or over said they had.

The overwhelming majority (87%) said they had no plans to access their pension specifically to help pay for Christmas with the remainder (9%) unsure of their plans.

Adrian Walker, retirement planning manager at Old Mutual Wealth, comments:

“December is a month when people face many demands on their money, and enticements to spend are all around. So as we approach the first Christmas since the introduction of the new pension rules in April, this research shows the vast majority of people are taking sensible decisions with their pension savings and realise that their pension income is for life, not just for Christmas. This is an excellent barometer of overall behaviour and backs up our own experience that withdrawals are consistently decreasing since a peak in May, just after the reforms, and there has been no discernable increase ahead of Christmas.

“While I would wholeheartedly support someone taking money from savings instead of going into debt at any time of year, the warnings of wholesale frivolous spending of pension cash seem to have been premature and there will be fewer Lamborghinis under Christmas trees this year than some might have expected.

“Personally, I’m encouraged by these findings, as they appear to be evidence that people are planning for sustainable income in retirement and not making rash short-term decisions.

“When looking at taking income from your pension, a good rule of thumb is to make sure you can secure enough income for the basics of living before considering extra spending such as holidays, home improvements, cars and, especially at this time of year, gifts and other presents.”

Ends

[1] All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 800 adults. Fieldwork was undertaken between 17th - 18th November 2015.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 55+).

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to Editors:

Old Mutual Wealth

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

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.