£2.7 billion or £4.7 billion of pensions?

Dec 10, 2015 | Tony Byrne's View

Reports on how much was withdrawn from pensions in the 6 months from April this year vary quite considerably. From the lowest estimate of £1 billion all the way up to £5+ billion, all they agree on is that there has been a massive influx of requests for withdrawals because of the new rules.

Using the quoted figure of £2.7 billion, and the cheapest Lamborghini advertised in Autocar at £125,000, those over the age of 55 have together purchased 21,600 Lamborghinis in six months! To break that down, that is 182 cars per day and roughly five per hour! It is anyone’s guess what has actually happened to the money that has been withdrawn.

I think it depends on the recipient as to whether it will have been blown on luxury holidays and cars or whether it has been reinvested wisely for retirement. As clients of Wealth and Tax Management you are lucky in that you can pick up the phone and ask our advice on how and when you should access your pension. Some of those who have accessed their full pension may well wish they had had the same service 10 years down the line, when they may end up with nothing left to show for their hard work.

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