Number of pension scheme withdrawals rises but average amount falls

Latest statistics from HMRC show that between October and December 2020 360 000 people made 907 000 withdrawals from their pension schemes totalling £2.37bn. This was a 10% increase from the 327 000 individuals who withdrew cash during the same months of the previous year and in value an 6% increase from the £2.2bn withdrawn in the equivalent months. The total amount of flexible withdrawals from pensions since flexibility changes in 2015 exceeds £42bn.

The average amount withdrawn by each individual throughout October November and December 2020 was £6 600 falling by 3% from £6 800 during the same months in 2019. According to HMRC since reporting became mandatory in April 2016 average withdrawals have been falling consistently.

Nathan Long senior analyst at Hargreaves Lansdown said: ‘Withdrawals from pensions remain subdued as retirees sensibly adjust their spending to account for...