Pension Withdrawals Surge as UK Savers Brace for Potential Budget Tax Changes

Amidst speculation of tax reforms, AJ Bell and Quilter report increased pension cash-outs and call for stability in tax policy.

Investment platforms AJ Bell and Quilter noted a significant rise in pension withdrawals as savers anticipate tax changes in the upcoming budget.
Current rules allow tax-free pension withdrawals up to 25% of the pot, capped at £268,275, but there are concerns this threshold may be lowered.
Chancellor Rachel Reeves has been rumored to consider a flat 30% tax relief rate on pension contributions, which could affect higher-rate taxpayers.
AJ Bell and Quilter have urged the Treasury to implement a 'tax lock' to ensure stability and predictability in pension tax policies.
Despite the uncertainty, AJ Bell reported a 45% increase in cash inflows, reaching a record £86.5 billion in assets under management.