Scots jetting off with pension cash

Almost eight in ten Scottish pensioners are taking advantage of rules letting them draw up to 25 per cent of their pensions as a tax-free lump sum, new figures show.

Pensioners in Scotland taking tax-free cash from private or workplace pension schemes are pulling down an average of 17,128, according to research out today from Prudential. The amount being taken tax-free from pension schemes has plunged by a third since 2008, the insurer revealed. Four in ten Scots have spent some of their lump sum on a holiday, double the proportion three years ago, with pensioners in Scotland significantly more likely to use it for a holiday than those elsewhere in the UK. A quarter have used some of the money to reduce or clear their mortgage.