Number of millionaire pension pots falls by a third
The number of personal pension pots valued at £1m or higher has fallen by more than a third, year on year.
New figures released by HMRC found that just 1,700 pension pots were worth more than £1m last year, down from 2,700 the previous year.
The data was obtained following a freedom of information request by investment platform InvestingReviews.
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Simon Jones, chief executive of the platform, said that pension pots have suffered as a result of recent stock market volatility. He urged savvy investors to develop alternative income streams instead.
“Pension pots have taken a hammering in recent times as global stock markets have gone into retreat,” Jones said. “Even the wealthy are feeling the pinch.
“Investors with long-term investing horizons can take heart from the fact that, historically, markets have always rebounded.
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“But it’s a different story for those who were hoping to retire in the near-term. Many will now either have to work a little longer, or develop alternative income streams to help them manage the squeeze.”
According to the HMRC data, there were 1,600 investors with personal pension pots worth between £1m and £1,999,999, with the remaining 100 millionaires sitting on pots worth more than £2m. The data was collated from investors in the government-backed NEST scheme as well as Self Invested Personal Pension Schemes, or SIPPS.
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