He said: “People continue to be attracted to stripping cash out of their pensions. This is often before planned retirement ages, and will inevitably in many instances be triggering large tax bills.
“On the one hand it shows the pension freedoms are working, but it also shows an emerging picture of large amounts leaving the pension system potentially leaving very little for people to live on by way of a regular income. People are not sticking to the rules as there are no rules.
“Stripping cash from a pension can trigger unintended consequences including limiting the amount you can subsequently save into a pension. This can be very restrictive for those people who have plans to continue working and they and their employer continue to pay in.”
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