7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

FCA publishes retirement income data

On 16 April 2024, the FCA published its analysis of data from firms in the retirement income market for 2022/23 (along with an interactive dashboard).  Key findings include:

  • the overall value of money being withdrawn from pension pots fell to £43.2million in 2022/23, down from £45.6million in 2021/22 (a decrease of 5%)
  • sales of annuities decreased from 68,514 in 2021/22 to 59,163 in 2022/23 (a decrease of 13.6%)
  • the number of DB to DC transfers continued to fall from 26,619 in 2021/22 to 18,073 in 2022/23.

FSCS data reveals almost £2 billion lost in retirement savings since 2019

On 17 April 2024, the FSCS published a press release on retirement savings losses.  It has received more than 43,000 claims since 2019 for total pensions losses reaching almost £2 billion when authorised financial providers and advisers went out of business, with four out of five claims made by men.

The FSCS is generally only able to pay compensation on pension and SIPP claims protected under its compensation rules, which typically limit the compensation available to £85,000.