UK. Pension disaster as nearly half of pots overdrawn in ‘real risk’ to retirement savings
Fresh analysis of Financial Conduct Authority (FCA) figures shows pension withdrawals at unsustainable rates have reached record levels.
In 2024/25, 45 per cent of all retirement savings pots were accessed at eight per cent or higher.
Financial experts generally regard four per cent as a prudent annual drawdown rate, meaning many retirees are drawing down at double the recommended pace.
The findings come from consultancy firm Broadstone, which compiled eight years of FCA retirement income market data.
The 45 per cent figure is the highest recorded and represents a two percentage point increase from the previous year’s 43 per cent.
The pattern is seen across all pension sizes.
Smaller pots under £10,000 had 84 per cent being withdrawn at eight per cent or more.
About one third of pots worth £100,000 to £249,000 were being accessed at elevated rates.
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