"There's a growing sense of urgency among pension savers who fear that one of the most valuable and popular tax benefits in the UK could soon be scaled back. A 45% rise in enquiries in just one month underscores how seriously people are taking the speculation. Many clients are asking whether they should act now to secure their existing entitlement before the Budget, or wait for clarity."
"The answer depends on individual circumstances; but what's clear is that confidence in the long-term stability of the UK pension system is being tested. If the Chancellor cuts the allowance, it could trigger a rush of withdrawals ahead of the Budget, particularly among those approaching retirement. This would be counterproductive, not just for individuals potentially depleting their pots early, but for fiscal planning too."
Internal data from deVere Group shows enquiries about taking lump sums from pensions rose 45% over the past month amid speculation the tax-free pension lump-sum allowance may be cut or capped in the 26 November 2025 Autumn Budget. The current allowance allows savers to withdraw up to 25% tax-free, up to around £268,275, and rumours suggest potential limits of £100,000 or £40,000. The uncertainty has driven more clients to seek guidance, raised urgency among savers, and risks behavioural effects such as pre-Budget withdrawal rushes that could deplete pots, complicate fiscal planning, and erode trust in pension policy.
Read at London Business News | Londonlovesbusiness.com
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