BRITAIN GOES PENSION CASH-IN CRAZY

BRITONS are racing to cash in their pensions early to help with the cost of living and have fun after a tough few years.

- Emily Braeger and Harvey Jones

As the UK economy starts to recover many pension savers cannot wait to dip into their pots and spend a little extra money.

Latest analysis shows more than three-quarters of retirees have now withdrawn money from their pensions before reaching retirement age. They are taking £47,000 on average, giving them and the wider UK economy a huge spending boost, according to a study by Scottish Widows.

While many are raising funds to meet everyday household bills, others are spreading their savings around to help their children and grandchildren get on.

Some are even spending spending the money on treats such as a luxury holiday of a lifetime, as the country's mood starts to lift.

Last week, the Office for National Statistics said the UK economy is going "gangbusters", as it outstrips Bank of England forecasts to grow at its fastest rate in two years.

GDP rose 0.6% in the first three months of 2024, the strongest increase for any G7 country, with the US up 0.4% and the eurozone trailing on 0.3%. France and Germany grew by just 0.2%.

The FTSE 100 index hit yet another all-time high yesterday and has now climbed almost 8% in the last month.

Yet the once booming US stock market rose just half that amount over the same period amid inflation fears.

The UK's stock market surge is boosting the value of the nation's pension pots and making the over 55s more confident about flexible pension withdrawals.

Under pension freedom reforms, introduced in 2015, the over-55s can use their nest eggs as cash machines, withdrawing lump sums or regular income whenever they wish.