Hargreaves study: 200k to cash in pension pot next April

Up to 200,000 people will cash in their pension next year, netting the Treasury an additional £1.6bn in tax, according to research from Hargreaves Lansdown.

An Ipsos Mori survey commissioned by Hargreaves found more than one in ten, or about 12%, of savers with a defined contribution (DC) pension said they would take all of their pension in one go when rules chance next April. However, when questioned about the tax implications of such a move only two in five, 38%, could accurately state how much tax would be deducted from a medium sized pension pot. The proportion who could accurately predict what rate of tax would be applied to large pension pots was less than one in ten (6%). Hargreaves Lansdown said the information gap was a “signi...