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Numbers taking large pots without guidance or advice, "concerning"


On Thursday, January 7, 2016 The FCA published Retirement Income Market Data for the period from July to September 2015. Below is a comment from Jon Greer, pensions technical expert at Old Mutual Wealth:

“The FCA figures show that 1 in 5 people who fully encashed a pot of £250k or above used neither a regulated adviser or pension wise for advice or guidance. This is concerning as they would likely have been subject to a substantial tax hit on the withdrawal and there is the potential that they did not fully understand the tax implications of their decision.

“It is possible that much of this money has been used to finance buy to let investments. Research we undertook with YouGov last year highlighted that 13% of retirees intended to use their pension pots to invest in buy to let. However our research, and the FCA data, relates to a time before the Government announced significant changes to stamp duty on second homes and buy to let properties and we would expect to see the amount of large pots being withdrawn without advice reduce dramatically as a result.”


NB – Proposed Stamp Duty changes:

From 1 April 2016, an increased rate of Stamp Duty will be due on second homes, including buy-to-let property investments.

The additional rate will be 3% on top of the normal stamp duty applicable.

  • For a £150,000 house sale, stamp duty will be £5000, in comparison to £500 today.
  • A 200,000 house: £7500 compared to £1500 today
  • A £300,000 house: £14000 compared to £5000 today

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145

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 £118.1 billion in customer investments (as at 30 September 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; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, 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

• The private client advisers business is now 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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