New analysis from leading online pension provider, PensionBee, reveals that average quarterly withdrawal amounts for all customers declined by over 10%, from £13,132 in Q1 2021 to £11,676 in Q1 2022. Both male and female savers opted to keep more of their pension invested as their withdrawal rates decreased by 10% and 12% respectively.
On average, male savers’ quarterly withdrawal amounts fell from £14,261 in Q1 2021 to £12,783 in Q1 2022. However, their withdrawal amounts remained significantly larger than those of female savers, whose withdrawals fell from £9,809 to £8,602 over the same period.
Despite a noticeable decrease in average quarterly withdrawal amounts, the proportion of customers aged 55+ who made withdrawals largely remained the same from Q1 2021 to Q1 2022.
Romi Savova, CEO of PensionBee, commented: “Record high inflation rates and recent stock market volatility have forced retirees to evaluate how they interact with their savings, impacting when and how much they withdraw from their pension.
Given these macroeconomic factors, it seems sensible that savers have adopted a more cautious withdrawal approach as they expect their money to stretch further for longer. This wider trend of saving more and spending less could also indicate that many pension savers are preparing for an impending cost of living crisis.
As always, timing is crucial with pensions, so I would encourage all savers to make an informed decision on when they choose to access their savings, as this can have a significant impact on their overall retirement income.”
Appendix
Table 1: Average quarterly withdrawal amounts for PensionBee customers in Q1 2021 - Q1 2022
Source: PensionBee, May 2022. Based on 2,079 customers as at 31st March 2022. Rounded to whole numbers.
Table 2: Average quarterly withdrawal amounts for male customers in Q1 2021 - Q1 2022
Source: PensionBee, May 2022. Based on 1,530 customers as at 31st March 2022. Rounded to whole numbers.
Table 3: Average quarterly withdrawal amounts for female customers in Q1 2021 - Q1 2022
Source: PensionBee, May 2022. Based on 549 customers as at 31st March 2022. Rounded to whole numbers.
Table 4: Proportion of customers aged 55+ who made withdrawals in Q1 2021 - Q1 2022
Source: PensionBee, May 2022. Based on 2,079 customers as at 31st March 2022. Rounded to whole numbers.
