FCA data shows 29% rise in pensions fully withdrawn since 2018-19

Just over 462,000 pensions were withdrawn in full in the 2024-25 tax year, compared with just over 357,000 in 2018-19, according to Financial Conduct Authority data reported on 12 June 2026. That is an increase of 29%¹.

The FCA figures show the number of plans fully withdrawn at the first time of access rising from 357,122 in 2018-19 to 469,723 in 2023-24, before falling slightly to 462,160 in 2024-25¹.

Source: Financial Conduct Authority¹

Most of the pots cashed out in full were relatively low in value. More than 300,000 pension pots withdrawn in full in 2024-25 were worth less than £10,000, and a further 112,526 were worth between £10,000 and £29,000¹. Across age brackets, the number of 65 to 74-year-olds withdrawing their pensions in full rose by 75% between 2018 and 2025, while the rate for those aged 55 to 64 rose by 15% over the same period¹.

TPT Retirement Solutions, a workplace pension provider, said the data suggests people have not saved enough to offer a meaningful income through pension drawdown. Its DC proposition associate director, Georgie Edwards, said:

The earliest age at which a pension can usually be accessed is 55, rising to 57 from April 2028, though earlier access may be possible in poor health¹. Options for taking money from a defined contribution pension include buying an annuity, moving it into drawdown, or taking some or all of it as cash¹.

Up to 25% of a pension can be taken tax-free, up to a combined limit of £268,275 across all pensions, with anything else taxed as income¹. Fully withdrawing a pension can also restrict future saving into pensions through the money purchase annual allowance, which reduces the annual allowance to £10,000 per tax year once taxable income is taken, unless the pot cashed out is worth £10,000 or less¹.

Why it matters for households

The figures cover people accessing a defined contribution pension for the first time and taking the whole balance rather than leaving it invested. Because most fully withdrawn pots were worth under £10,000, the sums involved are modest for many of those affected, but the tax treatment applies to the whole amount above the 25% tax-free portion¹.

Taking a pension in one go can push someone into a higher tax bracket for that year, and the money typically cannot be put back: repaying it could trigger a penalty tax charge for breaching pension recycling rules¹. Withdrawing taxable income also triggers the money purchase annual allowance, cutting the amount that can be saved into a pension with tax relief from up to £60,000 a year to £10,000, unless the pot is worth £10,000 or less¹. Taking money out increases income or savings, which could affect entitlement to state benefits¹.

The age at which pensions can normally be accessed rises from 55 to 57 in April 2028¹.

What happens next

No further FCA data release date is given in the report. The change to the minimum pension access age, from 55 to 57, takes effect in April 2028¹.