Pension Cash used to pay off Debts
FT Adviser reports “Research by Portafina of more than 2,500 of its customers found more than a third of those seeking advice on taking tax-free cash were doing so to tackle ongoing debt.
A further 21 per cent suggested the funds were for home improvement and 11 per cent needed it to pay for a new vehicle or to cover maintenance on their current car, van or motorbike.
The average age at which the advice firm’s customers took advice around tax-free cash in 2018 was 56 years and seven months, with more than half of those surveyed taking most of their money before they turned 56.
Before a tax-free cash transfer, average pot sizes were £89,974, while median pots were £56,923. The average tax-free amounts, therefore, were £18,110, or £12,171 for a median pot.” Read more here https://www.ftadviser.com/pensions/2019/02/18/paying-off-debt-most-common-reason-for-taking-pension-cash/