Cashpoint

Pension savers have withdrawn £15million every day from their pots since the pension freedoms were introduced in 2015.

Latest figures from HMRC reveal that the demand to take cash from pensions continues to rise. In the past three months, 198,000 people withdrew £1.59billion, up from £1.54bn over the same period in 2016.

While it’s good that savers are in control of their money, the pensions industry has major concerns that too few people are getting professional guidance to help ensure they make informed decisions.

Alistair McQueen, head of savings and retirement at Aviva, said: “Savers must be supported in their use of the freedoms, with Aviva’s data suggesting a majority (70%) of its customers are acting without the help of financial advisers or the free Pension Wise service. The Financial Conduct Authority reports that on average, people take just half-a-day to consider their options before acting. Forty years of saving should not be put at risk in a few hours.”

The Pension Wise service at pensionwise.gov.uk (or call 0800 138 3944) offers free, impartial guidance on pensions for people over 50.