Pension Savers take out £2.5bn

In total around £2.5bn of payments have been made to savers in the three months following the new pension rules for the over 55’s. This equates to almost £27million each day.

Of this figure, around £1.3bn was paid put as a cash sum with the balance as income drawdown payments.

Great care is needed when considering the new freedoms to firstly examine the tax consequences and secondly the level of income that can be withdrawn to maintain income throughout retirement.