A record £2.75billion was taken out of pension pots in the last three months, figures reveal.
The bumper withdrawal has raised concerns that some people are taking too much too quickly – and risk running out of cash.
It is the highest amount emptied from pots in a three-month period since the pension freedoms, which allow people to access funds flexibly, were introduced in 2015. The amount is up 21 per cent on the £2.27billion withdrawn in the same period last year, according to data from HM Revenue & Customs.
The pension freedoms sparked fears of people raiding pots and blowing the cash on fast cars – but that hasn’t happened.
Instead some are forced to turn to pension savings to help repay mortgages and other debts, while one in 10 needs the cash to pay everyday bills, research from financial giant Canada Life reveals.
Meanwhile more than one in 10 are dipping into pots to help families out.
Andrew Tully, technical director at Canada Life, said: “The risk of running out of money is very real, as there are no mechanisms to prevent people depleting their pots too quickly.”
