PensionBee observes reduced customer withdrawal amounts

Pension savers are choosing to keep more of their savings invested despite rising inflation, particularly self-employed savers, according to figures from PensionBee.

Average withdrawal amounts for the provider’s self-employed customers aged 55 and over fell by more than a quarter (28 per cent) year-on-year, from £23,633 in H1 2021 to £16,963 in H1 2022.

Despite the decline in average withdrawal amounts, the proportion of self-employed customers in the same age cohort who made withdrawals stayed the same over the year, remaining at 12 per cent.

Overall, the average PensionBee customer’s withdrawal amount fell by 14 per cent, from £16,749 in H1 2021 to £14,393 in H1 2022.

PensionBee said its data highlighted a broad adoption of a more cautious approach to withdrawals, as savers look to make their money stretch further for longer.

Male savers continued to make “significantly larger” withdrawals than their female counterparts, with their average withdrawal amounts totalling £16,088 in H1 2022 compared to average withdrawal amounts of £9,881 amongst women.

“Retirees are facing a tough balancing act, between accessing the money they need for today and withdrawing at a sustainable rate so their pension lasts for the whole of their retirement,” commented PensionBee CEO, Romi Savova.

“Given the tough current economic climate, it’s encouraging to see our customers choosing to keep as much of their pension invested as possible - as this is one of the few ways to protect its value against rising inflation.

“As always, timing is crucial with pensions, so I would encourage all savers to make an informed decision on when they choose to access their savings, as this can have a significant impact on their overall retirement income.”

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