Financial experts worry as pension withdrawals accelerate.
Over 770,000 of those aged 55 and over have withdrawn cash from their pension pots, and there is a concern that many of these people could run out of cash before they die. Concern was raised last year about the amount of money being withdrawn from pensions, especially since just 13% of people were using the money to buy an income for life. In these latest figures, it is estimated that those using their flexible access to their pensions have withdrawn an average of £11,000 each. The rate at which people are taking money from their pension funds is increasing too. Between April and June, £1.8bn was withdrawn by around 159,000 people. This brings the total withdrawn amount up to £6.1bn
Low Annuity Rates
While the concerns about pensioners having an income in later life are justified, annuity rates are at an all-time low after the EU Referendum result and the value of the UK annuity market has decreased by over half in the last 2 years. The Guardian details the growing concerns about the future of retirees and the rate at which pensions are being withdrawn.
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