Pension savers are being overtaxed at record levels when they dip into their retirement pots. More than 200,000 over-55s have clawed back nearly £500 million since pension freedoms were introduced in 2015.
Despite the relatively benign economic impact to date the impact of Britain’s decision to leave the EU has had a big impact on uncertainty among businesses. Add that to a mix of higher costs, weak domestic growth and lacklustre consumer demand and it’s clear that optimism has been dampened among British small businesses.
Property is emerging as the most popular destination for cash withdrawn from a pension in the first 12 months since the at-retirement reforms.