Experts have warned of an unsettling trend among pensioners which could see them exhaust their pension in retirement. Analysis of Financial Conduct Authority data found a nearly 30 per cent rise in the number of pensioners withdrawing more than 6 per cent of their pension's total value in the most recent financial year. More than 280,000 pensioners had a withdrawal rate of 6 per cent or higher, the analysis by Hargreaves Lansdowne found.
In total, pension withdrawals rose by 20 per cent over the same period, with pensioners cashing out more than 52bn. Experts warned that continually withdrawing from a pension of 100,000 at a rate of 8 per cent every year would see someone's pension dry up by the time they are 82.
Managing an income drawdown pot throughout retirement can be challenging. We don't know how long we are going to live and with recent data showing there are over one million people over the age of 90...
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