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Britons clammer to take pension income early

Britons clammer to take pension income early

Category: Pensions

Updated: 31/12/2010
First Published: 31/12/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Britons are keen to adopt an attitude of 'sooner rather than later' when it comes to taking part of their pension savings as an income.

Almost 7 out of 10 retirement savers want to start taking an income on their pension fund by the age of 65, with a quarter hoping to cash in on retirement savings by the age of 60.

Only 3% of savers are willing to wait until they are past 70, with 1% willing to wait until they are over 75 before taking an income, according to the research by MetLife.

Some 27% of people said they would like to start drawing an income from their retirement savings between the ages of 65 and 70.

The survey also shows that being protected against the effects of inflation is seen as the most important factor when taking an income from pension savings, with 50% choosing keeping pace with rising prices ahead of their income being guaranteed to last a lifetime.

The study was conducted as part of a response to the Government's decision to scrap the compulsory annuitisation age of 75 – a move that MetLife said it wholeheartedly supports as part of a drive to make the choices available to savers at retirement more flexible and simple.

"The overwhelming majority of retirement savers would like to start drawing on their pension fund by 65 although a substantial minority are happy to wait until they are past their 65th birthday," said Dominic Grinstead, managing director at MetLife's UK branch.

"Protection against inflation is the key for half of all savers with just 10% choosing maximum income at the outset as their main concern. The key to helping people make the right choices at retirement is to keep the options open to them as simple as possible."

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