Another year of increases in withdrawals from pension pots as £91.2 billion extracted in year ending 31 March 2026

Retirement income market data published by the FCA showed that there was a 21.7% increase in the total value of pension pots with £91.2 billion withdrawals in the year ended 31 March 2026 compared to £75.0 billion in 2024/25 and £52.2 billion in 2023/24.

30 Sep 2026

Retirement income market data published by the FCA showed that there was a 21.7% increase in the total value of pension pots with £91.2 billion withdrawals in the year ended 31 March 2026 compared to £75.0 billion in 2024/25 and £52.2 billion in 2023/24.

The majority of people who entered drawdown took a Pension Commencement Lump Sum (64.5%) which represented a slight increase of 2.6% on the previous year.

These withdrawals come ahead of excess pension pots becoming chargeable to inheritance tax from 6 April 2027 and pensions being a frequent topic for rumours ahead of the Autumn Budget.

AJ Bell's CEO Michael Summersgill said:

'These figures should end any doubt about the real-world consequences of allowing pension tax speculation to run unchecked...Confirming pension tax stability would solve the problem overnight without a penny of new Treasury spending, while clearly signalling the government stands behind its promises to savers.'

Internet link: FCA