Recent data* on flexible payments from pensions shows that in Q1 2020, almost £2.5bn was withdrawn from pensions – a 19% increase on Q1 2019 withdrawals, and the highest recorded Q1 of any year since pensions freedoms began. Although the average amount withdrawn per person was £7,100 (down 3% from Q1 2019 £7,300), the total value of flexible withdrawals from pensions since flexibility changes in 2015 has now exceeded £35bn.
Before taking any action, it is sensible to consider all your options. Pensions are designed to provide you with an income throughout your retirement. Taking out more money than you need to, or starting sooner, will mean you have less to live off in the future.
*HMRC, Apr 2020
Please note, the value of investments can go down as well as up and you may not get back the full amount you invested.