Overview
- The Financial Conduct Authority’s data for the year to March 2026 shows savers withdrew a record £91.2bn from pension pots, including about £22.1bn taken as 25% tax-free lump sums.
- The number of pots worth £250,000 or more being accessed more than doubled to 75,968, showing larger savers withdrew funds at a much higher rate than before.
- Fewer than a third of people (30.8%) who accessed a pension for the first time took regulated financial advice, raising fears that many made irreversible choices that could harm their retirement income.
- The Finance Act 2026 received Royal Assent in March 2026 and will bring most unused pension funds and death benefits within the scope of inheritance tax from 6 April 2027, which could leave estates or beneficiaries facing high combined taxes.
- Pension firms including AJ Bell and PensionBee are urging an early government pledge such as a 'pensions tax lock' because continued tax uncertainty risks removing billions from long-term retirement saving and cutting investment capital for the economy.