Since April 2015, Pension Freedoms have given people more flexibility to access their pension funds. Although £7.6 billion has been released from pension funds in the first 18 months, there has also been a significant amount invested into flexi access drawdown policies.
Over £6.1 billion was invested into income drawdown products in the 12 months since April 2015, with an average fund size of £67,500 *. By transferring pensions to a flexible drawdown products, people have taken control of their own pension funds, and have the flexibility to access their pension fund as and when they need to.
Statistics show that 20% of people who are releasing funds from their pensions are using the money to pay off debts, with the average withdrawal from income drawdown contracts in the first year of Pension Freedoms being £3,800. However over 33% of people entering retirement still have debts, of an average amount of £34,000.
If you feel that using some of your pension fund to clear your debts is a good idea for you, then please get in touch. We will talk you through the whole process and how you can go about getting access to your pension funds, on a no obligation basis. We can help you release your tax free cash, or a taxable cash lump sum using flexi access drawdown, and we will send you a personalised quote and information pack.
[*] ABI Pension Freedoms Statistics One Year On; Old Mutual Wealth Retirement Income Uncovered 2016
If you would like a free no obligation flexi-access-drawdown quote or have any questions you would like answered then visit our flexi-access-drawdown website or call us on 020 33 55 482