More than 100,000 extra pensions are being cashed in today in full compared to seven years ago when records began.
FCA data shows that since 2018-19, the number of people cashing their pensions in full each year has increased by 29% – or by 105,038.
Seven years ago 357,122 pension plans were fully withdrawn, but the figure climbed to 462,160 by 2024-25.
Ad hoc withdrawals have also increased. The number of pension plans from which an ad hoc partial withdrawal was made in 2018-19 was 163,335. In 2024-25, this had reached 328,419 – marking a 101% increase.
Looking across age brackets, there was a 75% increase in 65-74-year-olds withdrawing their pensions in full between 2018 and 2025. For those aged 55 to 64, the rate of pensions being withdrawn in full rose by a lesser 15% over the same over this period.
By pot size, more than 300,000 pension pots withdrawn in full in 2024-25 were worth less than £10,000, and a further 112,526 were worth between £10,000 and £29,000.
Tax year | Number of plans fully withdrawn at first time of access |
2018-19 | 357,122 |
2019-20 | 375,530 |
2020-21 | 341,404 |
2021-22 | 395,235 |
2022-23 | 420,728 |
2023-24 | 469,723 |
2024-25 | 462,160 |
Source: FCA
Tax year | Number of plans where the plan holder made ad hoc partial withdrawals by pot size | Total value of plans where the plan holder made ad hoc partial withdrawals by pot size |
2018-19 | 163,335 | £3bn |
2019-20 | 154,346 | £2.6bn |
2020-21 | 152,939 | £2.4bn |
2021-22 | 196,216 | £3.1bn |
2022-23 | 237,486 | £3.7bn |
2023-24 | 271,691 | £4.5bn |
2024-25 | 328,419 | £5.7bn |
Source: FCA
Georgie Edwards, DC proposition associate director at TPT Retirement Solutions, the firm which analysed the FCA data, said: “The rise in people cashing in their pensions in full is a worrying signal about retirement adequacy in the UK. For many, it’s not a strategic choice but a sign their savings aren’t sufficient – and some may also be reluctant to consolidate pots, missing the chance to build a more sustainable income.
“In some cases, savers are stuck in legacy products that don’t offer flexible options like phased drawdown or regular UFPLS effectively forcing higher withdrawals than they’d prefer and increasing their tax exposure.
“That’s particularly concerning because full withdrawals are taxed as income, often pushing people into higher tax brackets unnecessarily. It highlights the need for better guidance so retirees don’t erode their savings – or pay more tax than they need to.”