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Press comment: Pension freedoms figures look encouraging, but shadows remain

30/10/2019

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

Ian Browne"Figures on pension freedoms today show encouraging signs of a retired population that are using the choices as they were intended and withdrawing smaller but more frequent sums. However, figures from Moneyfacts last week found a less rosy picture.

"Moneyfacts research found that 70 per cent of savers who take a regular income from their pension withdrew 4 per cent or more of the value of their fund each year, while almost 30 per cent took an income of 8 per cent or more, and around 13 per cent have fully depleted their fund.

"Unsustainable withdrawal rates from pensions are the bleak shadow hovering over the success of pension freedoms. If continued it can mean that despite people having saved throughout their life for retirement they are then faced with pensioner poverty as they live longer than they had anticipated and spent too much too soon.

"The complex scenario planning for retirement means forward planning is crucial and this is why getting advice at this stage is so vital. In fact, the Moneyfacts findings also revealed people who do not take advice are more likely to run out of funds than those who take professional advice as almost three times more non-advised drawdown customers have fully depleted their funds than advised customers.

 "From November 1 people aged 50 and over will be getting new ‘wake up packs’ from their pension providers. It is vital that people don’t just throw them out with the rubbish but take a considered look at how much is in their retirement pot and think clearly over how much they can withdraw year by year."

 

 

 

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

2015

Q2

121,000

84,000

1,560,000,000

12,893

1.44

18,571

2015

Q3

130,000

81,000

1,170,000,000

9,000

1.605

14,444

2015

Q4

123,000

67,000

800,000,000

6,504

1.836

11,940

2016

Q1

142,000

74,000

820,000,000

5,775

1.919

11,081

2016

Q2

296,000

159,000

1,770,000,000

5,980

1.862

11,132

2016

Q3

324,000

158,000

1,540,000,000

4,753

2.051

9,747

2016

Q4

393,000

162,000

1,560,000,000

3,969

2.426

9,630

2017

Q1

381,000

176,000

1,590,000,000

4,173

2.165

9,034

2017

Q2

403,000

200,000

1,860,000,000

4,615

2.015

9,300

2017

Q3

435,000

198,000

1,590,000,000

3,655

2.197

8,030

2017

Q4

454,000

198,000

1,504,000,000

3,313

2.293

7,596

2018

Q1

500,000

222,000

1,700,000,000

3,400

2.252

7,658

2018

Q2

574,000

264,000

2,270,000,000

3,955

2.174

8,598

2018

Q3

585,000

258,000

1,960,000,000

3,350

2.267

7,597

2018

Q4

628,000

264,000

1,900,000,000

3,025

2.379

7,197

2019

Q1

648,000

284,000

2,060,000,000

3,179

2.282

7,254

2019

Q2

760,000

336,000

2,750,000,000

3,618

2.262

8,185

2019

Q3

778,000

327,000

2,370,000,000

3,046

2.379

7,248

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 £118.7 billion in investments (as at 30 September 2019).

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

The Quilter plc businesses are being re-branded as follows: 

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

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.