Quilter has urged the Chancellor of the Exchequer to prevent damaging pension speculation ahead of the 2026 Budget.
Last year, reports circulated suggesting tax-free withdrawals from pension pots at age 55 were under threat, prompting some people to rush to get money out.
Quilter said research it carried out taking in responses from 5000 UK retires found that 57% withdrew tax‑free cash ahead of the Budget, and of those 41% did so in anticipation of possible rule changes.
The rules did not end up being changed, and researchers also found (61%) of those who withdrew tax‑free cash from pensions now regret doing so.
It now appears unlikely Rachel Reeves will be delivering the next Budget, with Andy Burnham expected to take over in 10 Downing Street and choose his own chancellor. This creates even more uncertainty over future policy intentions.
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Jon Greer, head of retirement policy at Quilter, said: “This data shows how speculation ahead of last year’s Budget led many retirees to act out of fear of losing what is a vital component of their retirement provision rather than genuine need at that moment.
“The fact so many regret doing so highlights the real harm that can come from making decisions driven by rumour. This research underlines just how sensitive retirement planning has become to continuous budget speculation.
“Those saving towards and planning their retirement need and deserve certainty, and there should be a clear commitment to avoid another prolonged period of speculation ahead of future Budgets,” he continued.
“The chancellor only ruled out changes to the tax-free lump sum in the final days before the budget, by which point the damage had already been done – this cannot be repeated in the run up to the 2026 Budget.”
Image © Kirsty O’Connor/Treasury
