Class of 2015 enjoy pension at the double

PEOPLE who took control of their retirement savings following the 2015 “pension freedom” reforms have reaped the rewards by almost doubling their money over the last decade while also taking income along the way.

- By Harvey Jones

The popular reforms scrapped the obligation to use pensions to buy a lifetime annuity, allowing savers to leave their money invested while “drawing down” regular income or lump sums.

Those who did this by following the widely recommended ‘4% rule’ — also known as the safe withdrawal rate — have generated plenty of income and growth.

Someone who started with a £100,000 pension pot in April 2015 and took 4% a year via flexible drawdown would have seen their pot grow to £189,000.

And they'll also have withdrawn £47,779 in total income.