Pension cash goes on home
HOME improvements and the need to pay off debts are among the main reasons for people cashing in their pension pots in the first six months of the new retirement freedoms.
Pension firms also said there has been “no mad rush” by people to empty their nest eggs, with many consumers taking a “do nothing” approach.
Standard Life said that just 6% of its eligible customers have made use of the pension freedoms since they came into force on April 6.
Among those who have withdrawn some or all of their cash, the most frequent reasons so far have been for home improvements, repaying a debt or mortgage, the desire to have an emergency fund in the bank, to pay for a special occasion – like a holiday or a wedding – and to help children on to the property ladder.