Warning Issued to Pension Savers over Tax-Free Withdrawals

Warning issued to pension savers over tax-free withdrawals

Speculation is rife ahead of the Autumn Budget but pensioners are being urged to be careful.

Investors warned against kneejerk reactions to Budget rumours

Investors are being urged not to make any kneejerk pension decisions which could lead to irreversible consequences, as the Budget rumour mill begins to stir up financial worries. Wealth manager Rathbones has warned that fears over pension tax changes have caused another surge of premature withdrawals of the 25 per cent tax free lump sum. This follows speculation that Chancellor Rachel Reeves is set to scrap the tax free allowance in the looming …

Rathbones warns pension tax fears driving premature withdrawals

Rathbones has warned that speculation over pension tax changes is prompting savers to take premature withdrawals of their 25% tax-free lump sum, a decision many now regret.The wealth manager said it has seen a surge in withdrawals in recent months amid reports that Chancellor Rachel Reeves is preparing to cut the tax-free allowance in the November Budget.