Tom Selby, Head of Retirement Policy at AJ Bell, for comments on the amount retirees are withdrawing from their pension amid rising inflation and market developments.

Four-in-ten retirees drawing an income from their private pension are changing the amount of money they take from their pot in response to the double whammy of struggling markets and the rising cost of living.

The data comes from a survey carried out by investment platform AJ Bell Youinvest with over 1,000 of its customers that draw an income from their pension. 

It shows that the majority (60%) have not changed the amount they’re taking from their pension amid the prevailing uncertainty and rising inflation. But almost a quarter (24%) have made the decision to reduce the amount they’re taking out of their pot, which could help protect the longevity of their savings in the face of weak market returns. A further 16%, however, have chosen to increase their income withdrawals, with the most likely reason being the rising cost of living.

Tom Selby, Head of Retirement Policy at AJ Bell, comments:

With inflation predicted to hit an almost unthinkable 13% in 2022 and the energy price cap expected to leap well beyond £4,000 for the average household in January next year, the cost-of-living crisis is forcing millions of Brits to revisit their spending plans and lifestyle.

The effects are clearly being felt by those drawing an income from their retirement pot too, although the way people respond will vary depending on their circumstances.

Full release: 4 in 10 retirees alter pension withdrawals as inflation surges and recession looms

Media contact: Tom Selby, AJ Bell, 07702 858 234 / tom.selby@ajbell.co.uk