Overview
- Interactive Investor reports a 61% year-on-year rise in tax‑free pension withdrawals in August 2025.
- Treasury minister Torsten Bell declined to rule out pension measures in the 26 November Budget.
- FCA data show more than £18bn withdrawn tax‑free in the year to March 2025, up from £11.25bn the previous year.
- Speculation includes reducing the 25% tax‑free cash entitlement capped at £268,275, with some reports suggesting a limit near £100,000.
- Advisers urge caution, citing irreversible decisions and tax and growth risks, as reports point to pensions entering inheritance tax from April 2027.