A record 1m more people will reach the Pension Freedom age of 55 his year and this ‘peak’ will last for several years, according to new analysis.

Using ONS statistics, Aegon says its research found that 941,000 people will turn 55 in 2020.

Aegon says 2020 marks a ‘peak year’ for people to reach 55 and the peak will continue with more than 900,000 people turning 55 in each of the following six years. 

Since the Pension Freedoms were introduced in 2015 by then Chancellor George Osborne, over £35bn has been withdrawn by 1.4m individuals.

Steven Cameron, pensions director at Aegon, said: “We’ve already passed the 5th anniversary of the Pension Freedoms and they’ve proved hugely popular.

“The 2020s could see a further spike in interest as estimates show we are entering a record period for the number of people reaching 55, the current minimum age for accessing freedoms, peaking in 2020 and remaining high into the mid-2020s.

“However, the Coronavirus is affecting all aspects of our lives, including wealth as well as health, employment opportunities and attitudes towards retirement.

“Some may find themselves without other sources of income and be tempted to start taking a retirement income from 55. Others will want or need to continue working to build up sufficient funds to have the retirement they aspire to. The deadly impact of the virus on many thousands may also change people’s attitudes towards choosing between the financial guarantee for life of an annuity and the flexibility of income drawdown under the Pension Freedoms.”

He added that the Pension Freedoms were popular because of the flexibility they gave pension savers but this came with added risk.