Pensioner Rush To Cash-In Pension Has Passed Says City Watchdog

The Financial Conduct Authority said the rush to cash in pension savings after the alteration in pension laws last April 2015 has faded.

The rush had created fears that many savers may lose much of their money due to huge taxes.

About 222,000 pension pots had a portion or the entire fund taken from them.

Quarterly data from the City watchdog shows the numbers had fallen to 127,094, signifying a huge drop in the number of withdrawals.

In the final three months of 2015 indicated that 52 per cent of those withdrawing their pensions are still active in comparison to 58 per cent in the previous quarter.

Pensioners made use of their money to be used as a portion of their down payment for new properties and vehicles. A number used their money for holidays and re-investing the money into growing opportunities.

A great portion of pensioners who withdrew their pensions had lost their money to scammers posing as government employees. The scammers had used the bank account numbers of said individuals to siphon their money.

According to Investment Firm FIdelity International, its clients had invested most of their pension pots to top their income. About 17pc reinvested their money in other products. For home improvements, 12pc of their consumers purchased items and services. Meanwhile, about 12pc used the money to purchase property to let or for themselves.