Latest Blogs
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Tilley: Rebooting the FOS makes sense
I’ve written before about the lack of coherence in the UK’s pension complaints landscape and it remains a source of real frustration for those of us working in the sector.
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Lisa Webster: Pension age uncertainty lingers on
We’ve known for many years that normal minimum pension age, NMPA it's known, is going up.
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Lisa Webster: Beware IHT and pensions double taxation
One of the most disliked aspects of bringing pensions into the estate for inheritance tax (IHT) purposes from 6 April 2027 is the double taxation that will occur when the member dies on or after their 75th birthday.
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Tilley: Are we asking too much of pension savers?
Working in UK pensions, I’ve always accepted that the system evolves. Fiscal pressures change, demographics shift, and governments recalibrate policy objectives. But even allowing for that, the pace and volume of legislative change in the pensions space over the last few years feels unprecedented, and in my view increasingly problematic.
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Lisa Webster: Should tax-free cash always be taken?
Since the Lifetime Allowance was abolished and replaced with the Lump Sum Allowance (LSA) and lump sum and death benefit allowance (LSDBA), we have seen an increase in SIPP members who want to take drawdown only – foregoing the right to take the associated pension commencement lump sum (PCLS).
Popular News
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Pension VfM framework must be for savers: SPP
The Society of Pension Professionals (SPP) has urged the Government’s proposed pension Value for Money framework to be directed to help savers, not just trustees, regulators and governance bodies.
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SPP elects Hymans Robertson’s Cooper as president
The Society of Pension Professionals (SPP) has elected Calum Cooper, partner & head of pension policy innovation at Hymans Robertson, as its next president for a two-year term which began on 1 June.
New figures from the FCA published today have revealed that the total number of pension plans accessed for the first time rose by 8.6% to 961,575 compared to 885,455 in 2023/24.
The figures were included in the regulator’s latest retirement income data for 2024/25.
In particular the figures revealed a surge in people accessing pension pots worth more than a quarter of a million pounds.
The number went up in the six months between April 2024 and September 2024, coinciding with fears that the first Budget of the new Labour government would include measures such as capping or scrapping tax-free lump sums.
But the number went up again in October 2024-March 2025, in response to the Budget announcement that pensions would be included in the IHT net from April 2027.
In total, more than £53bn was taken out over the year in cases where pension pots were moved into drawdown but not fully emptied out.
Steve Webb, partner at pensions consultants LCP, said: “These figures show graphically how uncertainty about pensions and tax can move the market.
“Given that pensions should be a long-term business, it is deeply disappointing that consumer behaviour is being driven so profoundly by uncertainty around public policy.”
Jon Greer, head of retirement policy at Quilter, said: “The continued growth highlights how more people are leaning on their pensions earlier, often to meet rising living costs and fill income gaps elsewhere.
“Some of the increase will also reflect the demographic bulge of baby boomers reaching retirement age, so part of the rise is structural and will naturally continue in the years ahead. But the real concern is the scale of withdrawals and the lack of advice that accompanies them, which risks leaving many without adequate income later in life.”
The value taken from pension pots overall leapt by more than a third, rising 35.9% from £52.2bn in 2023/24 to £70.9bn in 2024/25. Drawdown products saw the largest increase in uptake, with sales climbing 25.5% to 349,992, cementing their position as the dominant choice for retirement income.
Mr Greer said: “While flexibility remains attractive, it also exposes retirees to the risk of depleting their savings too quickly if withdrawals are not carefully managed.”
Annuities continued their modest revival with sales up 7.8% to 88,430. Mr Greer said: “Higher interest rates have made annuities more competitive, and while volumes remain far below their pre-pension freedoms peak, more people are starting to recognise the value of securing a guaranteed income in retirement.”
Unless there is a big surge in inflation in the next two months, the state pension will rise by 4.7% next April.
More than a third, 36%, of Gen Xers aged between 44-59 are in the dark when it comes to knowing about their parents’ inheritance plans.
Fraudsters are using increasingly sophisticated impersonation techniques to access savers' pensions, according to the Pensions Regulator.
Pension and investment provider Aegon has launched a new app for workplace pension members, which it claimed will help people engage with their money and navigate key financial moments.
Workplace savings and pensions provider Scottish Widows has extended Origo’s Unipass Letter of Authority across its business to cut turnaround times and improve the quality of information.