Pension savers are being urged to consider the long-term damage they risk doing by withdrawing too much from their retirement pots – as figures show record numbers were dipping into their savings earlier this year. Load Error The Institute for Fiscal Studies (IFS) warned that the recent stock market falls could mean some people are permanently worse off in retirement than they had expected to be. ____________________________________________________ More on coronavirus: ____________________________________________________ HMRC said that in the first quarter of 2020, 348,000 people made flexible withdrawals from their pensions – a 23% increase on the same period a year earlier. The IFS said the recent fall in stock markets has reduced the wealth of those with DC pension pots invested in equities. David Sturrock, a senior research economist at IFS, said: “The recent fall in the stock market is likely to hit the future retirement incomes of a lot of people. “However, investors should be especially mindful at this time of cashing in investments after significant market falls and for some, it may make sense to hold back until the present economic turmoil subsides.
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