Only 55% of pension savers entering drawdown since 2014 have taken income, with 45% simply taking their tax-free cash, new research from Hargreaves Lansdown revealed.
The figures, taken from analysis of DIY pension savers entering drawdown since the start of 2014, also revealed that of those drawing an income, only 40% had taken it straight away.
Hargreaves Lansdown suggested that anyone just taking the lump sum was ‘still trying to build’ their pension, but as soon as someone comes to draw income, issues of how much they draw and how long they’ll live become ‘important.’
The research found that of savers who put off taking income, 40% have waited at least six months, and another 24% have waited at least a year.
“The swift introduction of pension freedom left many braced for a drawdown shaped catastrophe – taking too much income, too quickly,” Hargreaves Lansdown senior analyst, Nathan Long, commented. “But our research shows that most people aren’t being too quick on the drawdown.
“Instead, they’re separating the decision to start drawing income from taking tax free cash, which is a very sensible approach.
“Those that opt for income are taking their time to settle on the amount of income they draw, and are using the new flexible rules to mould their pension to fit their circumstances as they gradually transition into retirement – only around one in 10 people leave work in the year when they reach State Pension Age.
“The evolution of the market and the regulation that oversees it needs to help consumers get timely, helpful, personalised information so they can make the decisions that are right for them.”
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
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In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
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