Withdrawals Archives - Pension Policy International

19MarMarch 19, 2025

Danish pensions lobby rejects pension withdrawals for home purchase

Denmark’s pensions industry has rejected the idea of allowing younger people to withdraw their pension savings to finance home buying, saying people should rather be increasing pension contributions. Analysts at the Danish central bank, Danmarks Nationalbank, recently produced a report on access to the housing market for younger people with targeted financing relief, in which they also rejected the idea, currenly under discussion, of freeing young people to use their pension savings for house purchases. According to the report, authored by five analysts:...

March 19, 2025

News, SliderDenmark, Withdrawals

14FebFebruary 14, 2025

The effect of Covid pension withdrawals and the Universal Guaranteed Pension on the income of future retirees in Chile

By Carlos Madeira Chile implemented large pension withdrawals during the Covid pandemic. Afterwards, Chile increased non contributory beneÖts in a quasi-universal scheme. Simulating future pensions, I show that the average loss in contributory pension income is 27.9%, with losses of 23.9% and 31.4% for men and women, respectively. After accounting for public transfers, the average loss in total pension income is just 6.2%, with losses of 7.5% and 5.2% for men and women, respectively. Current retirees lost just 1.1% of...

February 14, 2025

Articles, Savings2024, Chile, COVID-19, Retirement security, Withdrawals

06FebFebruary 6, 2025

South Africans withdraw R43 billion from pensions

Since the launch of the two-pot retirement system in September, more than 2.4 million South Africans have withdrawn a total of R43 billion from their pension funds. The South African Revenue Service (SARS) confirmed this last Friday evening. According to SARS, 2,664,279 applications for tax directives were received, with 2,403,379 approved. The remaining applications were rejected due to issues such as incorrect identity numbers and tax numbers. SARS Commissioner Edward Kieswetter exprncern over 213,654 taxpayers who declared incorrect taxable income to secure a...

February 6, 2025

News, SliderSouth Africa, Withdrawals

15JanJanuary 15, 2025

One in five take cash from pension at earliest opportunity: L&G

One if five pension savers who withdrew a cash lump sum from their pension did so as soon as they turned 55. The figures from Legal & General, show that a significant proportion of people are accessing their pensions at the earliest opportunity, with the vast majority failing to seek advice on the potential financial consequences of this action. More worrying almost half (46 per cent) of those accessing this money at the earliest opportunity said the took these funds “because...

January 15, 2025

News, SliderWithdrawals

05DecDecember 5, 2024

South Africa. Survey shows that withdrawals will be used to repay debt

A new survey sheds light on what pension fund members want to use the money for when they withdraw some of their retirement savings under the two-pot retirement system, while it also shows how much (or little) people know about this big change to pension funds. The survey was conducted by JustMoney.co.za, a platform that helps South Africans make good money choices. Sarah Nicholson, operations manager at JustMoney, says among respondents considering withdrawing funds, 79% said they would use the money...

December 5, 2024

NewsSouth Africa, Withdrawals

03DecDecember 3, 2024

Low-Income Nigerians Can Access Entire Pension Pot – PENCOM

Low-income pensioners can now withdraw their entire retirement savings at once or continue receiving their monthly pension while awaiting the Minimum Pension Guarantee approval. In a memo issued by the National Pension Commission, signed by A.M. Salem, the Head of the Surveillance Department said that the change aligns with the new section 4.1 (g) of the revised regulations for managing retirement and terminal benefits, following the recent minimum wage increase to N70,000. Previously, retirees could only withdraw one-third of their total Retirement...

December 3, 2024

NewsIncome, Nigeria, Withdrawals

20NovNovember 20, 2024

South Africans Withdraw $1.94 Billion From Pensions

South Africans have withdrawn 35.1 billion rand ($1.94 billion) from retirement funds since new laws came into effect three months ago giving them early access to part of their savings. The figure is higher than the amount the National Treasury forecast savers would tap after the implementation of a so-called two-pot pension system on Sept. 1. South Africa’s central bank has said that a high-withdrawal scenario may help boost the country’s economic growth rate by as much as 0.3 percentage...

November 20, 2024

NewsSouth Africa, Withdrawals

04NovNovember 4, 2024

Pension warning: Britons withdrawing £500 a month face ‘very real threat’ of running out of money in retirement

Britons are warned they could run out of money in retirement if they withdraw £500 a month from their pension. The warning comes from the Retirement Income Market data from the City watchdog, the Financial Conduct Authority (FCA) which showed that well over 220,000 pension pots had a withdrawal rate of more than eight per cent in 2023/24. This surge in high withdrawal rates has raised alarms among financial experts as pension drawdown continues to be the most popular option. Almost 280,000 savers...

November 4, 2024

NewsSustainability, UK, Withdrawals

18OctOctober 18, 2024

The Impact of Lump-Sum Retirement Withdrawals on Labor Supply: Evidence from Peru

By Carla Moreno & Sita Slavov We examine the labor supply impact of a 2016 policy that allows retirementeligible individuals covered by Peru’s private pension system to receive retirement benefits as a lump sum rather than as an annuity. We present a theoretical model predicting that, for liquidity constrained workers, the lump sum option makes formal employment (requiring pension participation) more attractive relative to informal employment (not requiring pension participation); it also encourages early retirement. Using household panel data, we...

October 18, 2024

Articles, System Characterization2024, Adequacy, Labor Market, Perú, Withdrawals

18OctOctober 18, 2024

UK. Tax-free withdrawals from pension pots surge amid fears over autumn budget

Savers have started to withdraw cash from their pension pots amid fears over potential tax changes at the autumn budget, according to investment companies. The investment platform AJ Bell said reports that the chancellor, Rachel Reeeves, was likely to increase taxes at the budget on 30 October had spooked some of its customers into new retirement savings decisions. The wealth management firm Quilter, which manages more than £113bn of customers’ money, also said it had experienced a surge in calls from...

October 18, 2024

NewsTaxation, UK, Withdrawals

March 2025

Danish pensions lobby rejects pension withdrawals for home purchase

February 2025

The effect of Covid pension withdrawals and the Universal Guaranteed Pension on the income of future retirees in Chile

South Africans withdraw R43 billion from pensions

January 2025

One in five take cash from pension at earliest opportunity: L&G

December 2024

South Africa. Survey shows that withdrawals will be used to repay debt

Low-Income Nigerians Can Access Entire Pension Pot – PENCOM

November 2024

South Africans Withdraw $1.94 Billion From Pensions

Pension warning: Britons withdrawing £500 a month face ‘very real threat’ of running out of money in retirement

October 2024

The Impact of Lump-Sum Retirement Withdrawals on Labor Supply: Evidence from Peru

UK. Tax-free withdrawals from pension pots surge amid fears over autumn budget