Pension withdrawals surge to £70bn amid IHT and tax-free cash fears16 Sep 2025 15:46
“Pension withdrawals increased by 35.9% over the past year amid concerns over inheritance tax (IHT) on pensions and rumours about 25% tax-free lump sum changes.
The overall value of money being withdrawn from pension pots increased to £70.1bn in 2024/25, up from £52.2bn in 2023/24, according to data from the FCA.
The FCA’s retirement income data found that in the six months to September 2024, when tax-free cash rumours were rife, 99,243 drawdown pots were accessed for tax-free cash, up from 84,132 in the previous six months. This figure then increased to 111,878 in the six months to March.
Steve Webb, former pensions minister, now partner at consultancy LCP, said the data revealed the impact ‘uncertainty’ around pensions and tax can have on the market.”
If Rachel Reeves had a brain cell, she could stop the flight of money out of the market by dispelling the rumours but she hasn’t got a clue. My maximum £268,275 tax free is being removed from your grubby hands Rachel. Go whistle dixie and attack your own pension you loathsome champagne socialist.