Hard-up pensioners forced back to work
THOUSANDS of retired people are being forced back to work because they can’t pay their bills, experts have warned.
Pension freedoms introduced in 2015 let savers draw their money flexibly, like a bank account, and new figures from HMRC show that more than half a million over-55s have withdrawn a total of £8.1billion in the last tax year alone, a 23 per cent rise on 2017.
But experts fear a lack of planning is forcing some newly retired pensioners back into the workforce.
Research by insurers Zurich found that almost two-thirds of people did not take financial advice before accessing their pension.
And a report from Age UK into the pension freedoms, based on interviews with experts, found professionals were worried about people paying too much tax, taking too much risk, giving up valuable guarantees, facing high charges and withdrawing so much money that they emptied their pots.
Caroline Abrahams of Age UK said: “It’s heartbreaking that so many older people are unable to afford a decent lifestyle because they weren’t able to get the best deal from their pension.”
She said some people were “floundering” under the pension freedoms.