Around 5000 Standard Life customers have raided their pension pots so far to take advantage of the new “pensions freedom” regime which came into force this month, the insurer and investment firm has said.
The shake-up, which allows over-55s to cash in their pensions to spend on anything from Ferraris to buy-to-let homes, has seen around 1% of the group’s 500,000 customers take advantage of the new rules.
It is understood that most applicants have claimed the tax-free lump sum which can be taken under the rules, but are sitting on their hands over major decisions such as whether to empty their entire pots.
In a blow to the hopes of luxury car dealerships, most of the activity so far has been centred on smaller pots of less than £20,000.
Standard Life’s results for the quarter to March 31, before the new rules, were buoyed by a combination of stronger stock markets and new cash from investors. This boosted the firm’s assets under administration by 5% to £311.9 billion.
The company is also benefiting from more businesses across the UK being compelled to auto-enrol staff in pension schemes.
