The amount of money paid out under the pension freedoms has hit £1.6 billion mark for the second quarter in a row, as the reforms move into a period of ‘restraint’
HM Revenue & Customs (HMRC) has published its latest set of pension payments data.
Following the launch of pension freedoms in 2015, 176,000 savers took flexible payments equating to a total of £1.59 billion in Q1 2017.
This was close to previous quarter, £1.56 billion.
From Q2 2016 to Q1 2017 a total of £6.5 billion was taken in flexible payments, compared to £4.4 billion in the previous 12 months.
HMRC said prior to April 2016 it was not compulsory for providers to report flexible payments, but since that time it was. The Revenue said the increase in payments since Q2 2016 was partly a result of the mandatory reporting requirements.
At this year’s Budget the Treasury said it has raised £1.2 billion more in tax receipts than it initially expected from pension freedoms last year.