News
25 January 2017, 00:00
Saga comments on £9.2bn being accessed via pension freedoms
Commenting on the latest Government data about the amount of money being accessed via the pension freedoms, Sally Merritt, head of product, Saga Investment Services, said:
"These latest numbers clearly demonstrate the popularity of pension freedoms with the British public, with over half a million people now having made use of them since they were introduced in April 2015. The figures show that typically people are withdrawing small amounts from their pension with the average withdrawal being a little over £6,000.
“We would, however, continue to issue caution when it comes to withdrawing cash from your pension pot without taking expert advice first. Not only does taking money from their pension mean that people need to plan for an alternative source of income in retirement, but it could also lead to people getting a nasty surprise on their income tax bill - especially if they take it all in one go, rather than in phases over multiple tax years.
“There's also the perhaps lesser known issue of pensions now being a much more attractive way to pass on wealth to loved ones from an Inheritance Tax perspective than was previously the case, this means some people are finding it more tax efficient to release money from other sources before touching their pensions. Ultimately, with increased choice comes increased complexity, and we would urge people to seek advice before taking action."
Ends
Notes to editors
About Saga Investment Services
Saga Investment Services has been developed to open up the world of investing and financial planning to the UK’s over 50s in the run up to and throughout retirement, and to make the process as simple and stress-free as possible. Customers can invest from just £100, and have access to investment advice and financial planning services. Saga Investment Services champions a straight forward and transparent approach to investing, and is a proud member of the Plain English Campaign. It is a joint venture between Saga, the leading provider of services to the nation’s over 50s, and Tilney Bestinvest, the expert investment and financial planning group.
IMPORTANT INFORMATION
The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This press release does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. Past performance is not a guide to future performance