"Eamonn Prendergast, a chartered financial adviser at Palantir Financial Planning, said pension pots were meant to last decades, not be raided in panic. The government must do more to quash rumours early and give clarity. Rachel Vahey at the investment platform AJ Bell said the concern is people aren't making decisions based on what's best for them but because they are worried about possible changes to pensions tax incentives."
"Of this, 18.3bn was tax-free cash an increase of 62% on the 11.3bn the previous year. Many financial experts say budget jitters and fiscal rumours are driving this trend as speculation swirls about what measures the chancellor, Rachel Reeves, will announce in her budget on 26 November. They warn kneejerk decisions could wreak havoc on people's long-term plans."
UK pension savers withdrew more than £70bn from retirement pots in 2024–25, up almost 36% from the previous year; £18.3bn of that was taken as tax-free cash, a 62% rise. Rising withdrawals are linked to budget jitters, fiscal rumours and speculation about potential changes to pension tax incentives ahead of the chancellor's budget on 26 November. Current rules allow up to 25% of a pension tax-free (to a limit of £268,275) from age 55 (rising to 57 in April 2028). Experts warn that panic withdrawals can damage long-term plans and call for clearer government communication. Some withdrawals may also reflect immediate cost pressures or concern about future inheritance tax changes.
Read at www.theguardian.com
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