Pension changes boost economy

News Update from CFM UK Ltd: New figures show the over-55s have embarked on a £3.1bn spending spree since new rules introduced in April allowed savers to access their pension funds directly. Research by peer-to-peer lender Zopa shows that, on average, savers over 55 have been withdrawing £36,500 from their pots with 10% cashing in the maximum tax-free lump sum of 25%. Some 31% said they had already cashed in some or all of their pension, while a further 6% said they planned to do so.

Although economists and pensions experts welcomed the boost to the economy, they also warned against irresponsible spending. Meanwhile, Zopa has announced that it is launching a campaign to make it easier for savers to put P2P loans into their pension pots. It follows a successful campaign for the P2P loans to be allowed into ISAs - along with stocks and shares - and so avoiding tax on the interest paid on the loans.

Daily Express, Page: 1-2   The Daily Telegraph, Business, Page: 27

Posted on August 19th 2015

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