The Financial Conduct Authority (FCA) has today published Retirement Income Market Data for the period from July to September 2015.
This press release has been modified - please see notes for editors.
The FCA has collected data from retirement income providers covering an estimated 95% of assets in contract based pensions to enable it to track and monitor changes in the market. The information is helping to inform the FCA’s approach to regulation of the market.
The Government’s pension reforms brought about significant changes in the way consumers can access their pensions and the data provides insight into how people are using the new freedoms.
The report covers:
- choices made by consumers accessing their pensions
- guaranteed annuity rates – levels taken up and not taken up
- levels of pension withdrawals for customers making a partial withdrawal
- use of regulated advisers
- consumers’ stated use of Pension Wise
- whether consumers change providers when accessing their pensions
Retirement income market data will be published quarterly. The data published today relates to the second quarter following the pension reforms and may not reflect longer term trends.
Notes for editors
- Retirement Income Market Data: July-September 2015[1] [PDF]
In the report we included some data on the numbers of people cashing out their pension pot. In response to a specific query we have revised the published version of the report.The 120,969 figure relating to customers fully cashing out their pension in the quarter is correct. This includes customers who were accessing their pension for the first time in the quarter as well as existing customers who were already in retirement income products. We have removed the figure of 68% of new customers fully cashing out their pension, as the total customer numbers include some existing customers.
We intend to publish a corrected figure shortly as soon as we have obtained and analysed some extra data from firms. However, on the basis of all the data we hold presently, we do not expect a material shift in this number and it is still clear that a large proportion of consumers are cashing out their pension in full.
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA[2].