Skip to content
Go back

Article Tags:

Please choose from the following:

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A combined sum of more than £1.8 billion was withdrawn from pension pots by savers over April and May, following the introduction of new reforms.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Another £800 million was withdrawn using income drawdown policies, with 170,000 withdrawals made using these schemes.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

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

Click for more information about the Wesleyan group of companies.

© 2021 Wesleyan Assurance Society