Concern as 10% more of us dip into our pension

THE number of people raiding their pension pots soared in the final months of last year.

Experts fear the cost of the Covid crisis has forced people to dip into their retirement savings to cover bills.

Some 360,000 people accessed their pension in the last three months of 2020 – a 10 per cent increase on the same period a year earlier.

Jon Greer, from wealth management company Quilter, said: “The increase is a worrying trend and begins to show more and more people are requiring additional money as lockdown restrictions remain in place.”

The HM Revenue and Customs figures show how people are using the pension freedoms available to over 55s.

HMRC said there was a four per cent increase in the number of people withdrawing, compared with the previous quarter. However, the average withdrawal was £6,600, down from £6,800 in 2019.