British Savers Access Over £6 Billion from Retirement Funds, According to Reuters

LONDON – British pensioners have accessed over £6 billion ($7.89 billion) from their retirement savings since significant pension reforms were enacted 15 months ago, according to the Treasury’s announcement on Thursday.

These reforms eliminated the requirement to purchase an annuity, granting individuals greater flexibility regarding how they utilize or invest their savings. Since April, approximately 159,000 individuals have withdrawn £1.7 billion.

This figure more than doubles the £820 million reported in the first quarter, as stated by an insurer in response to the Treasury’s recent data.

The total amount disbursed has now surpassed £6 billion over 772,000 transactions since the reforms began in April 2015.

“Financial constraints affect many, and the pressures on our limited resources—savings and property—are considerable. While freedom, choice, and popularity of these options are commendable, it is crucial that savers receive support to ensure their current enthusiasm does not jeopardize their future goals,” said Alistair McQueen, Savings & Retirement Manager at the mentioned insurer.

The government’s pensions guidance service has recorded over 2.7 million website visits and nearly 75,000 appointments, reflecting ongoing consumer interest in maximizing the benefits of the new regulations.

Additionally, the government has unveiled plans to safeguard consumers by introducing caps on early exit fees and allowing millions more individuals to trade expected income from their annuities on the open market starting in April 2017, pending agreement from their annuity providers.