Retirees are raiding pension funds, finds survey

New research has found UK pensioners are increasingly likely to withdraw one-off lump sums from their pensions rather than steady regular payments.

More than three-quarters of retirees surveyed by Prudential admitted taking out an average of £24,154 in one go.

Of these, 13 per cent gifted all or part of the amount to children, while a large proportion simply treated themselves.

Gary Shaughnessy, Prudential managing director of retail, life and pensions, warns people must start thinking about “the repercussions” and advises investing the money in savings schemes instead, which can be used to supplement their post-work income.

He explains: “Even in retirement, people have to plan for the longer-term or they run the risk of their finances becoming increasingly strained.”

Donna Bradshaw, a financial planning strategist with IFG Financial Services, recently predicted changes in the economy could help spark a new saving trend.

© Adfero Ltd

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