Overview

• Financial firms report a spike in withdrawal enquiries and cash‑outs this week after remarks about taxing those with the "broadest shoulders."
• FCA figures show £70bn withdrawn from pensions in 2024–25, up from £52bn the previous year, with large pots accessed more frequently.
• Policy options under discussion include an IFS cap of £100,000 and a previously advocated £40,000 limit by pensions minister Torsten Bell, though the Treasury has not confirmed any change.
• HMRC says tax‑free lump sums generally cannot be returned to a pension and withdrawals lack statutory 30‑day cancellation rights.
• Analysis from Barnett Waddingham and Murphy Wealth indicates that rushing to take cash can increase future tax or shorten a pot’s lifespan, whereas delaying or staging withdrawals may improve long‑term outcomes.