Savers withdraw £1bn using pension freedoms

Savers have withdrawn more than £1bn from their pension pots since the introduction of radical new freedoms in April this year, Chancellor George Osborne says.

Osborne says 60,000 people have utilised the new flexibilities in the weeks since they became available. However, the Treasury has not disaggregated the data to provide more granular information such as the average pot size of these individuals or how much of their pot they have taken out in one go.

Answering questions during a House of Commons debate earlier today, Osborne also issued a warning to providers who are not allowing their customers to access the freedoms.

He said: “I can give the House the latest numbers — indeed, the first numbers — on how many people have taken advantage of the freedoms.

“So far, in the few weeks since they came into effect, 60,000 people have made use of them.

“More than £1bn has been transferred out of people’s pension funds as a result. It is a sign that this is a real success, but we have to make sure that people get the best advice, that the market responds and that companies up their game in helping customers make use of these freedoms. We will be watching these things very carefully.”