Simply Summer Wealth
New pensioners aren’t splashing the cash………………….When the new pension rules came
into force in April 2015, fears were
expressed that pensioners might
raid their pension pots to go on
a spending spree. The former
Pensions Minister Steve Webb,
famously remarked at the time
that pensioners could choose to
spend their savings on buying
a Lamborghini if they wished.
However, the evidence suggests
that this hasn’t happened.
Whilst the total value of pension
withdrawals made since April 2015 is
over £25bn, the average withdrawal
made between July and September
2018 was £7,597, the lowest
level recorded by HMRC since their
records began2 in Q2 2015.
Volatility playing a part
The lower level of withdrawals could
be a sign that pensioners were
reacting to market volatility and
concerned to preserve their wealth.
Managing withdrawals from pension
funds can be a challenge for those
unfamiliar with the stock market;
that’s why taking advice is so worthwhile.
Ensuring their pension funds
last as long as they do themselves is
a concern often by those approaching
retirement; we can help ensure
retirees make the right choices at
the right time……continue reading SFFS Simply Wealth_Summer 19