Avoid £18bn pension rush

PENSION savers are being urged to stay calm ahead of the Budget on November 26 following a surge in withdrawals from retirement pots amid reports of another potential tax grab by Chancellor Rachel Reeves.

- By Harvey Jones

Around 211,000 people took money from their pensions in the year to March 31, up 30% on the previous year, Financial Conduct Authority figures show.

The total withdrawn jumped 60% to £18billion, as over-55s moved cash out to give to family members and reduce potential tax bills. Many savers appear to be acting before fully understanding the consequences of early withdrawals, experts say.

Emma Sterland, chief financial planning officer at wealth manager Evelyn Partners, described the rush as “unprecedented” and said advisers are dealing with “waves of calls from worried clients seeking guidance on complex pension rules”.