Pension Lump Sum Withdrawals Rise Amid Tax Fears

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Pension Lump Sum Withdrawals Surge: UK pension savers substantially increased their ⁢tax-free ‍lump sum withdrawals in the 2024/25 financial year, rising by over 60% to £18.1 billion. Driving Factors: This surge is attributed to concerns about potential‍ changes to pension⁣ tax rules, particularly the introduction of inheritance tax on⁤ pensions by April 2027.The cost of living crisis and⁣ higher interest rates may have also contributed.
Post-Budget increase: In the six months⁢ leading up to and including March 2025, withdrawals increased by 36.5% compared to the previous six months. The ⁤number of savers withdrawing also rose by 33% during the same period.
government Revenue: The ‍government⁤ anticipates raising £1.5 billion by⁢ 2030 by including pensions within inherited estates.
* ⁤ Expert Opinion: Emma Sterland from Evelyn ⁢Partners believes the increase is driven by uncertainty and potential panic related to policy changes.