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<p>Between Q2 2016 and Q1 2017, individuals accessed over £6.4 billion from defined
contribution pension pots through 1.4 million payments.</p><p> </p><p>Early evidence
collected by the Financial Conduct Authority (FCA) and HMRC suggests that individuals
are making decisions to cash in small pots while drawing down a steadier income stream
from larger pension pots. However, as of March 2017, 5.8 million defined contribution
pots eligible for withdrawal, or 80% of all eligible pots, remained untouched. Overall
it is too early to draw definitive behavioural lessons from the data that is currently
available on withdrawals from defined contribution pots, given that pension freedoms
have only been in place for little over two years.</p><p> </p><p>The FCA is also undertaking
a review of the post-freedoms retirement market and published its Retirement Outcomes
Review interim report in July 2017. The final report is due to be published in the
first half of 2018. The Government welcomes the FCA’s work in this area, awaits the
publication of the final report, and will carefully consider any recommendations contained
within it.</p>
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