Official Statistics

Flexible payments from pensions

Updated 30 April 2021

April 2021 Official Statistics

Throughout January, February and March 2021, £2.6 billion was withdrawn from pensions flexibly. This represents a 6% increase year-on-year from £2.5 billion withdrawn throughout the same months in 2020. The total value of flexible withdrawals from pensions since flexibility changes in 2015 has exceeded £45 billion.

Around 383,000 individuals withdrew from pensions throughout January, February and March 2021, a 10% increase from 348,000 during the same months of the previous year. There was a 6% increase in the number of individuals withdrawing compared to the previous 3 months (360,000), in line with seasonal patterns for previous years.

Withdrawal numbers typically rise in October, November and December, before peaking in January, February and March, as this coincides with the beginning of a new tax year. This seasonality could be due to some individuals accessing their pension over a number of years and using the flexibility to withdraw funds at the beginning of the tax year.

The average amount withdrawn per individual throughout January, February and March 2021 was £6,800, decreasing by 4% from £7,100 during the same months in 2020. Since reporting became mandatory in April 2016, average withdrawals are becoming less volatile.

Figure 1. Number of individuals taking flexible payments from pensions, and value of flexible payments from pensions

Bar and line graph showing the number of individuals taking flexible payments from pensions, and value of flexible payments from pensions between 2016 and 2021

Source: HMRC data

Table 1. Number of individuals taking flexible payments from pensions, and value of flexible payments from pensions

Year and quarter Number of individuals Total value of payments (£m)
2017 Q4 198,000 1,500
2018 Q1 222,000 1,700
2018 Q2 264,000 2,270
2018 Q3 258,000 1,960
2018 Q4 264,000 1,900
2019 Q1 284,000 2,060
2019 Q2 336,000 2,750
2019 Q3 327,000 2,370
2019 Q4 327,000 2,230
2020 Q1 348,000 2,460
2020 Q2 340,000 2,280
2020 Q3 347,000 2,330
2020 Q4 360,000 2,370
2021 Q1 383,000 2,600

Background to pensions flexibility

Pension freedom tax rules allow members of defined contribution pension schemes to access their pension savings early, provided they have reached the required minimum pension age, which is currently 55. Scheme members can take their pension benefits in a number of ways. This could be:

  • as one or more payments a year for a number of years
  • several payments a year over a shorter timeframe
  • the full value of the fund could be taken in one payment

HMRC only receives information on taxable flexible payments. Tax free payments or any elements of payments that are not taxed are not included in these statistics.

The numbers published for tax year 2015 to 2016 are not comprehensive. To manage the burden on industry, reporting was optional for tax year 2015 to 2016, before becoming mandatory from April 2016. The increase in reported payments seen from April 2016 onwards is expected to partly result from this.

About this release

This publication includes the number of flexible payments made from pensions, the number of individuals who have received these flexible payments and the total value of all flexible payments reported to HMRC. Further information regarding pension flexibility can be found in the pension flexibility guidance.

The next release of this publication will be September 2021.

Contact information

The statistical contacts for this publication are:

For press queries, please contact:

HMRC Press Office, tel: 03000 585020