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Press comment: Record numbers make flexible pension withdrawal as average amount paid drops


If you are covering the latest HMRC statistics on flexible payments from pensions, please see the following commentary from Ian Browne, pensions expert at Quilter. The statistics show that the number of individuals making withdrawals increased by 27% from a year ago, while the average value paid out shrank from around £8,600 to £8,185.

Ian Browne“Pension freedoms figures for 2019 reveal we are entering a stable stage of the pension freedom era. At the exciting dawn of pension freedoms many people looked to withdraw substantial sums. Now, four years later, things have calmed down. We expect to continue to see the average value hover around the £3,500 mark.

“Dramatic concerns the UK public would use that freedom irresponsibly now seem over cautious. However, it has not all been smooth sailing for pension freedoms and we are still trying to combat the tsunami of challenges that this new era has presented. High on the agenda is how people invest their money during this stage of life. This is a challenge that is getting trickier as volatile markets prompt people to become cautious and opt for cash, the equivalent of hiding the funds under the mattress.

“This has been high on the regulator’s agenda, which is why we saw a mammoth amount of pension regulation from the Financial Conduct Authority yesterday. This included the introduction of investment pathways for non-advised consumers in drawdown. The logic behind pathways is hard to argue with. They encourage people into an investment that is broadly designed around them and with their needs in mind. However, we cannot ignore the risks that go along with it and must not forget that for many advice will continue to be key. How the money is invested is not the only concern and advisers can help people shop around for the best deal, make sure the amounts withdrawn are prudent and sustainable, and ensure people don’t pay too much in tax.”

For more information contact

Michael Glenister020 7778 963807469
Kathleen Gallagher023 8072 629307990

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 £95.3 billion in customer investments (as at 31 March 2020).

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: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

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.