A new survey from online pensions provider PensionBee has revealed that more self-employed workers are keeping their savings invested, despite the rising cost of living. PensionBee data shows that average quarterly withdrawals among self-employed customers declined by 28 per cent over the past year, from £23,633 during the first half of 2021 to just £16,963 in the first half of 2022.
However, while average quarterly withdrawals among the self-employed declined sharply, withdrawals among eligible self-employed customers (those aged 55 and over) remained steady between H1 2021 and H1 2022.
The statistics for self-employed savers reflected a broader overall trend of more cautious withdrawals, as people seemingly look to make their savings stretch further. Average withdrawals among all PensionBee customers fell 14 per cent between H1 2021 (£16,749) and H1 2022 (£14,393).
The survey also revealed that males were continuing to make considerably larger withdrawals than female savers, a trend also seen during the first half of last year. The average withdrawal amount for male customers during H1 2022 was £16,088, compared to just £9,881 among female savers.
PensionBee CEO Romi Savova commented: “Retirees are facing a tough balancing act, between accessing the money they need for today and withdrawing at a sustainable rate so their pension lasts for the whole of their retirement.”
“Given the tough current economic climate, it’s encouraging to see our customers choosing to keep as much of their pension invested as possible – as this is one of the few ways to protect its value against rising inflation.”
“As always, timing is crucial with pensions, so I would encourage all savers to make an informed decision on when they choose to access their savings, as this can have a significant impact on their overall retirement income.”
