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Press comment: HMRC releases number and value of flexible payments made from pensions since April 2015

27/04/2016

Adrian Walker comments on HMRC data on flexible pension withdrawals.

Adrian Walker

Following today’s release by HMRC of the latest number and value of flexible payments made from pensions since April 2015, Adrian Walker, retirement planning manager at Old Mutual Wealth, commented:

“The simple fact that almost a quarter of a million people have accessed their pension savings flexibly should not be held up as a measure of success for the Government’s pension freedoms reforms. I agree that people generally should be treated as adults and given the ability to access their money when and how they like, within reason. The real test will be whether these 230,000 people are still enjoying a comfortable retirement in 10 or 20 years, not only one year in.

“What today’s new figures do seem to show is a slight shift in the pattern of pension payments over the last quarter, with a smaller number of retirees taking a larger number of payments. This could be an indicator that behaviour is changing and fewer people are taking larger sums, while a greater number take sustainable regular income withdrawals. Most providers witnessed an initial ‘gold rush’ from last April to around June as customers made use of the freedoms perhaps to pay down debts but if feels like we are approaching something akin to a ‘new normal’.

“As understanding improves, we have seen more people taking a considered approach in conjunction with their adviser, which includes blending the benefits of multiple income options from small pots, drawdown and annuity.”

 

 

For more information contact

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

Notes to Editors:

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.

Old Mutual Wealth oversees £131.3 billion in customer investments (as at 30 September 2017).

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

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

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

Old Mutual Global Investors (‘OMGI’) is the asset management business of Old Mutual Wealth with £39.8bn funds under management (as at 30 September 2017). On the 19th December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Following managed separation from Old Mutual plc, Old Mutual Wealth will rebrand to Quilter plc. Each of the businesses within the Quilter Plc group will be rebranded over a two-year period, with the exception of Quilter Cheviot, which will retain its existing name.

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 (as at 31 December 2016) customers across the world and has a total of £212.3 billion of assets under management (as at 30 June 2017).

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