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Press comment: Pension flexibility figures hover around same numbers but new challenges ahead 

02/11/2018

If you’re covering the latest figures from HMRC on flexible payments from pensions please see the following comment from Ian Browne, pensions expert at Quilter. 

"Pension freedoms is beginning to imbed in society as recent figures from HMRC reveal that the number of individuals accessing their pension flexibly and the amount they are taking per payment is starting to hover around the same figures over the past few quarters.

"However, these figures may start to tell a different story soon, as freedoms is in for a whole new set of challenges given increased investor jitteriness during market volatility. In the three years since the pension world shifted, investors have enjoyed buoyant markets, with both the FTSE and US indices breaking records. Now, the last number of months have seen dramatic swings in the market and it’s understandable that people are nervous about their future retirement, particularly if its only around the corner, or in fact here. However, its important investors don’t panic and do something rash – either pulling money out of their pension or shifting their investment strategy without careful thought.

"Managing volatility and minimizing downside risk is key for investing for decumulation and investors entering that phase of their life need to ensure they are changing their investment appropriately. Getting financial advice, particularly for those invested and within 5 years of retirement, is crucial."

 

No. of Payments

No. of individuals

Total value of payments

Av value per payment

Av No. of payments per individual

Av value paid to individuals

121,000

84,000

1,560,000,000

12,893

1.440

18,571

130,000

81,000

1,170,000,000

9,000

1.605

14,444

123,000

67,000

800,000,000

6,504

1.836

11,940

142,000

74,000

820,000,000

5,775

1.919

11,081

296,000

159,000

1,770,000,000

5,980

1.862

11,132

324,000

158,000

1,540,000,000

4,753

2.051

9,747

393,000

162,000

1,560,000,000

3,969

2.426

9,630

381,000

176,000

1,590,000,000

4,173

2.165

9,034

403,000

200,000

1,860,000,000

4,615

2.015

9,300

435,000

198,000

1,590,000,000

3,655

2.197

8,030

454,000

198,000

1,504,000,000

3,313

2.293

7,596

500,000

222,000

1,697,000,000

3,394

2.252

7,644

574,000

264,000

2,270,000,000

3,955

2.174

8,598

585,000

258,000

1,960,000,000

3,350

2.267

7,597

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.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 £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

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.