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Thousands of savers with £250k pensions take cash over tax-free money and IHT fears
['Laura Miller', 'Social Links Navigation']
Latest from MoneyWeek
Thousands of over-55s with larger pensions have pulled money out of their pots since Labour took power, over fears about limits to access to tax-free cash and changes to inheritance tax rules, new figures have suggested.
Steve Webb, partner at pensions consultants LCP said: “These figures show graphically how uncertainty about pensions and tax can move the market.
Withdrawals of tax-free cash doubleWithdrawals of tax-free cash from pensions have more than doubled in the last two years, the figures from the Financial Conduct Authority have also revealed.
A total of £18.3 billion of tax-free cash was withdrawn in 2024/25.
“On the one hand, rising living costs could be forcing more people to dip into their pension money to pay the bills.
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