Over 25% of lump sum pension withdrawals are to ‘save elsewhere’. Nearly one in five over-55s with a private pension withdrew a lump sum during 2019, with the most popular reason for doing so being to put the money into a savings account, new research has shown.
The analysis, commissioned by Canada Life, revealed that one in four people chose to withdraw an average of £18,400 to save elsewhere, with a further one in five people withdrawing an average of £10,000 to deposit in the bank.
Meanwhile, one in five people chose to focus on making home improvements, with pension withdrawals averaging around £11,600.
Whilst Canada Life stipulated that the “highest value priority for the pension cash” was to reinvest the money into stocks and shares, this option was chosen by just under one in ten people, with an average investment of £34,700.