Pensions warning as 48% make potentially costly move - ‘out of pocket in later years’

Pensions warning as 48% make potentially costly move - ‘out of pocket in later years’An expert has issued advice after data suggested that Brits are doing something that could be disadvantageous Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Bookmark Add us as preferred source Comments By Adam Toms 18:11, Sat, Jun 6, 2026 Updated: 18:11, Sat, Jun 6, 2026 Brits have been issued advice about their pension pots (Image: Getty)British retirees have been issued a pensions warning, as many make a potentially costly move. Data suggests that 48% of all direct contribution pension pots first accessed in 2024-2025 were cashed as a complete lump sum, but this can leave retirees out of pocket in their later years, an expert has said. Antonia Medlicott, Founder and Managing Director of financial education specialists Investing Insiders, said: "Whether or not cashing out your pension is the right move varies dramatically depending on personal circumstances. For smaller pots, where you have other sources of income for retirement, cashing them out can often be the simplest and quickest approach. window.scriptsToLoad.push({url:'https://live.primis.tech/live/liveView.php?s=118222&vp_content=plembed3a6btjknzwqh&cbuster=%%CACHEBUSTER%%&playerApiId=v118222',triggeredBy:'tcfLoaded',delay:1500,containerId:'ovp-primis',title:"Primis player",beforeLoad:()=>{window.top.addEventListener('primisPlayerInit',e=>{try{if(e.detail&&e.detail.playerApiId==="v118222"){if(window.document.getElementsByClassName('jwplayer')[0]){e.detail.float('disable')}}}catch(e){}})},}) “With pots that have much higher values, that’s when things start to get more complicated. In these situations, cashing them out isn’t often the best decision for your money. Instead, you should be thinking about how you can withdraw the money in the most tax-efficient way possible, whilst ensuring that you’re set up for the rest of your retirement. Article continues below ADVERTISEMENT Ge...