TISA comments on the Flexible Payments from Pensions stats Q4 2020
Renny Biggins, Head of Retirement at TISA, said: “There was a 10% increase in the number of people making pension withdrawals in Q4 2020 compared the same quarter in 2019, which is likely a consequence of unemployment caused by coronavirus. We know that it is the youngest and the oldest in the workforce who are being hit the hardest by the pandemic. These figures demonstrate that over 55s may be dipping into their pension pots to make up shortfalls resulting from redundancy.
“The figures show, however, a small reduction in the average withdrawal which could be linked to consumers using some discretion because of future uncertainties caused by the pandemic and lockdown reducing expenditure opportunities.
“We now must watch withdrawal statistics closely in the coming months with high redundancy rates expected following the end of the Job Retention Scheme. It will be interesting to see whether MaPS guidance take-up increases in line with this. At TISA, we are working towards unlocking more personalised guidance and simplified advice support services for consumers, so that more adults can get the help they need when it comes to managing their finances effectively. Planning is vital to ensure individuals have enough savings for their retirement.”