Pension Freedom Statistics: £15.7 BN from April 2015

February 9th, 2018

HMRC have released figures that show pension savers have cashed in £15.7 billion from their pension pots since pension freedoms were introduced in April 2015.

Over 3.2 million taxable payments have been made using pension freedoms, with 198,000 people accessing £1.5 billion flexibly from their pension pots over the last 3 months, according to published HMRC figures.

There has been some discussion on the reason for the reduction of the average payment per individual in the last quarter but because providers don’t record the reason for the payments, it will all be speculation. It does appear though that the number of individuals accessing payments may have stabilised around the 200,000 mark each quarter but that could also just be coincidence.

and quarter Number of payments (1) Number of individuals (1) Total value of payments (2,3)
2015 Q2 121,000 84,000 £1,560m
2015 Q3 130,000 81,000 £1,170m
2015 Q4 123,000 67,000 £800m
2016 Q1 142,000 74,000 £820m
2016 Q2 296,000 159,000 £1,770m
2016 Q3 324,000 158,000 £1,540m
2016 Q4 393,000 162,000 £1,560m
2017 Q1 381,000 176,000 £1,590m
2017 Q2 403,000 200,000 £1,860m
2017 Q3 435,000 198,000 £1,590m
2017 Q4 454,000 198,000 £1,504m

 

Notes to the table

i) The numbers published for 2015-16 are not comprehensive as to manage the burden on industry reporting was optional for 2015-16 but compulsory from April 2016. The increase in reported payments seen in 2016 Q2 is expected to partly result from this.

ii) The data underpinning these figures comes from Real Time Information (RTI) reports submitted to HMRC.

Footnotes

  1. Figures are rounded to the nearest 1,000.
  2. Figures are rounded to the nearest £10 million.
  3. Includes taxable payments only.
  4. The number of individuals for the year totals are less than the sum of the number of individuals from each quarter as some have taken payments in multiple quarters.
  5. Quarterly figures may not sum to total due to rounding.

 

Source: Technical Connection