Race to beat Reeves to your pension cash

PENSION savers rushed to withdraw their tax-free cash over the past financial year, bracing themselves for possible changes to tax rules on retirement funds.

- By Maisie Grice

The amount withdrawn from UK pensions in lump sums rose more than 60% in the 2024/25 financial year to £18.1bn, up from £11.25bn the prior year.

Emma Sterland, chief financial planning officer at Evelyn Partners said, "These startling figures show that the country's pensions savers have been in an unprecedented rush to take their tax-free lump sums."

"You can’t help feeling much of this is a slightly panicked dive into pensions sparked by policy change uncertainty."