Posted on: 3rd August 2020
2020 will see an all-time peak of 941,000 people eligible to utilizefreedom from them turning the age of 55.
The trend will also see an increase of high numbers recurring over the next 5-6 years due to increased financial hardship and uncertainty. Many insiders believe this will result in a spike in taking advantage of the policy. This analysis was supplied through the Office of National Statistics by way of Aegon.
Since the unveiling offreedom in 2015, a withdrawal of over 35 billion pounds by around 1.4 million individuals has been undertaken and with conditions around the coronavirus those figures are set to increase due to alternative incomes being sourced during this period and moving forward.
It’s also factored into other areas than increased financial turmoil. The ongoing changes in everyday working practices and the uncertain changes in the job market could have people turning to their pension funds early upon hitting freedoms age.
With health and wealth being affected by the current pandemic as well as potential job opportunities, the feeling towardsis adversely affected and those without secured incomes feel the temptation to take the retirement income from 55. The other alternatives could be for people to continue working to gain the sufficient income to retire comfortably.
No doubt the virus has played a major part in effecting many on the guarantee of financial wellbeing with an annuity, as well as drawdown of income under pension freedoms at risk due to stock market volatility.
The best pension advice is highly recommended before considering your options. The current climate may have a lasting lifelong imprint on your financial future should you access any pot prematurely and without understanding the ramifications on your income.
To put your family’s future at risk by flying blindly into financial uncertainty can waste all your contributions and leave you at an extremely tough ground during an uncertain point in the climate.