Pension withdrawals surge by 36% to £70.9bn as more savers access pots – FCA
The number of pension plans accessed for the first time increased by 8.6% to 961,575, compared to 885,455 in 2023/24.
The Financial Conduct Authority (FCA) released its latest Retirement Income Market Data, showing pension withdrawals rose by 36% to £70.9bn in 2024/25, up from £52.2bn the previous year.
The number of pension plans accessed for the first time increased by 8.6% to 961,575, compared to 885,455 in 2023/24.
Sales of drawdown policies climbed by 25.5%, rising from 278,977 to 349,992.
Annuity sales went up by 7.8%, with 88,430 sold in 2024/25 compared to 82,061 last year.
The total value of money taken from pension pots increased from £52,152m to £70,876m, up 35.9%.
30.6% of first-time accessed pension plans were by holders who took regulated advice, slightly down from 30.9% in the previous year.
Defined benefit to defined contribution transfers dropped again, falling from 7,181 to 6,418.
Rob Hillock, head of personal financial planning at Broadstone, said: “Today’s data shows a significant surge in savers accessing their pensions with nearly £20 billion more withdrawn in 2024/25 compared to the previous year, a 36% rise.
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