Adaptive management of pension savings implies that a person does not have to buy a retirement annuity; instead a UK citizen at age of 55 can withdraw cash.
The figures show that the average amount withdrawn per person in the third quarter of 2019 was £7,250. The Royal London senior executive Steve Webb says people are gradually cutting back on cash withdrawals. The peak of such operations is usually in January.
“People should think carefully before cashing out their retirement fund, few of them seek professional advice and prefer to keep money on hand,” said Stephen Lowe, the communications director for Just Group.
Nathan Long, the senior analyst at Hargreaves Lansdown, believes: “The new rules for managing retirement accounts have been adopted in a hurry. The stock market is not calm, and people can invest in risky securities, and a market crash can cause a panic among pensioners.”
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