“Pensions freedom” reforms took effect in April 2015 and the Association of British Insurers (ABI) has released its six top facts to emerge from the reforms:
- Interest in the reforms resulted in an 80% increase in calls to pension providers in the first month.
- In the first three months, providers paid out almost £2.5bn in cash and income drawdown payments.
- About 60% of all cash lump sums paid out in the first three months went to people younger than 60, and around 80% to under 65s.
- For the same period, only 42% of income drawdown payments went to the under 65s.
- In 95% of cases where savers accessed a cash lump sum, they withdrew the entire fund.
- The amount of cash withdrawn in the first three months represents less than 1% of all pension funds held by over 55s.