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

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 £116.5 billion in customer investments (as at 30 June 2018).

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: 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 the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

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