How do people take retirement benefits from DC Schemes?

G

GSheehy

Registered User
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Saw this via ILACs Twitter account and thought it worthy of a post.

They analysed the 2,704 retirement benefit claims they paid to 1,738 DC scheme members in 2019.

See the infographic in the link below for a breakdown of the types of benefits taken and the payouts per benefit types.
 

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That's interesting.

I'm surprised at the statistic that in 2019, 62% of people took retirement benefits before age 65.
 
Shame they didn't include the actual average balances., i'd like to have seen those too...
 
Going by those figures, I would guess that a lot of people have very small pension pots. So small they can either qualify for the trivial pension or withdrawing it all as a lump sum under the 150% of final salary under company schemes. Quite a worry statistic.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
That's what I was wondering Stephen, I couldn't figure the large % tax free lump sum, but that makes sense along with the 150% final salary I forgot about that option.
 
The average (all) pension pot currently maturing is circa €130,000 so DC schemes must be way lower than that.

The lure of maturing these small pension pots before 65 appears to be strong, even in a non recessionary period.
 
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