Recent statistics shows that 1 in 5 people who take money out their pension funds are doing so to pay off debts. A third of people entering retirement have debts, with the average being over £34,000. *
The Pension Freedoms which came into force in April 2015 have given people more flexible access to their pension pots. Over £7.6 billion has been paid out from peoples’ pension funds in the last 18 months.
Of those taking funds from a flexi access drawdown contract, the average amount withdrawn in the first 12 months of Pension Freedoms was £3,800. Those with smaller pension funds who have cashed in their whole pension, have received an average payment of £14,500.
The prediction of former Pensions Minister, Steve Webb, that people would “blow their funds on Lamborghinis” seems far from the truth with people being cautious about taking money out of their pensions. Your pension is of course meant to sustain you in retirement, but if you feel that releasing money from your pension fund might be a good idea, then we can help.
Many people with final salary pension are taking advantage of the historically high transfer values** and using their tax free lump sums to pay off their mortgage debt.
We have years of experience at helping people take their tax free cash or further lump sums from their pension fund, while leaving the rest invested until you are older. We can provide you with a free no obligation quote and a personalised information pack, and we will answer all of your questions to ensure that you make the right decision for your circumstances.
You can visit our website www.best-drawdown-pension.co.uk or call us on 020 33 55 4827.
[*] Old Mutual Wealth Retirement Income Uncovered 2016 ; ABI Pension Freedoms Statistics One Year On
[**] Article re-writtten April 2017
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