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New pension freedoms 'make positive start'

By Wesleyan

A combined sum of more than £1.8 billion was withdrawn from pension pots by savers over April and May, following the introduction of new reforms.

Pension freedoms came into force on April 6, giving the over-55s more control over how their savings are used.

And the Association of British Insurers (ABI) has now reported that more than £1 billion was taken out of pension pots, in the form of 65,000 cash withdrawals.

Another £800 million was withdrawn using income drawdown policies, with 170,000 withdrawals made using these schemes.

Some 11,300 retirement annuities were purchased over the two months, with savers putting in £630 million.

Meanwhile, the ABI said a sum of £720 million was used to buy 10,300 income drawdown policies.

On average, people purchased annuities with sums of £55,750, while they put £69,900 in income drawdown schemes.

Copyright Press Association 2015

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