Over-55s have accessed £23 billion since introduction of pension reforms

More than a million savers have embraced their new pension freedoms, accessing more than £23 billion-worth of savings, figures from HM Revenue and Customs show.

Over-55s now have more flexibility over how they access their pots. Picture: John Devlin
Over-55s now have more flexibility over how they access their pots. Picture: John Devlin

Launched in April 2015, the reforms mean people are no longer required to use their pension pots to buy an annuity as an income when they retire.

Instead, over-55s have more flexibility over how they access their pots, being able to withdraw some or all of the money, subject to tax. Before the freedoms were introduced, most savers who did not purchase an annuity faced a 55 per cent tax charge on lump sum withdrawals, the Treasury said.