Why are people 'cashing' in their pensions?

HMRC’s latest pension freedom statistics show that over 500,000 people have withdrawn a total of £9.2bn from their pensions using the flexible rules since April 2015, with an average of three payments per person.

New research from Retirement Advantage among over 55s who have used the freedoms to access their pensions flexibly shows how people are using this money:

28% spent the cash on home improvements
26% put the money in a savings account, while 19% invested the money elsewhere
19% went on holiday
13% bought a new car
12% paid off the mortgage or other debts

………….. We doubt many Lamborghinis have been bought!