How are retirees managing their pension pots for life after work?

6th February 2018 | Posted in: Pensions, Savings & Investments life after work

Pension Freedoms are now well established but as ever, the Treasury monitor the economic impact of cash released into the economy using data obtained from HMRC.

Too much cash released could prompt regulatory or government intervention.

With the Christmas period now past, comment is now being made on the draw from pension funds.

Nathan Long (Senior Pensions Analyst Hargreaves Lansdown, 25 Jan 18):

Rather than use pensions to splurge on an extravagant Christmas, retirees have operated restraint when managing their pensions showing the new rules are bedding in nicely and the amount being withdrawn is stabilising.

“The number of payments made has increased, but this is simply a reflection of more and more people using drawdown for their income in retirement.”

He adds: “The fact the rate of growth is slowing actually shows that the dash for cash is abating and retirees are facing up to managing their pension pot to provide for their life after work.”

However, Ton Selby (Senior analyst at AJ Bell) adds:

“Our own research suggests many savers are entering drawdown simply to take their tax-free cash, without thinking properly about where their money is invested or how and when they are going to draw an income”.


Retirees should perhaps note the concern raised by AJ Bell, that retirees need to be more vigilant in managing both their pension investment and making appropriate plans for phased draw of that investment.

Such planning can only really be made against a backdrop of forecast pension performance and these comments reinforce the necessity of engagement with your pensions’ professional in order to secure the optimum for your pension investment.

If you would like to discuss any of the above or you are looking at planning for your retirement, we would be delighted to assist, so please do not hesitate to contact us.

If you feel we could help you and would like to discuss any of the above, please contact David Guild MA on 0131 317 7377 or email to
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