State pensioners with private pots have rushed to raid their private pensions
State pensioners scramble to ‘withdraw cash’ in fear over rule change
State pensioners are set to scramble to access their cash – with withdrawals surging 36 per cent ahead of the Autumn Statement from the Labour Party Chancellor Rachel Reeves on November 26.
State pensioners with private pots have rushed to raid their private pensions – with withdrawals totalling an eye-watering £71 billion.
The Financial Conduct Authority data shows savers withdrew £70.9 billion from their funds in 2024/25. That marks a 36 per cent hike from the previous year’s £52.2 billion.
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The number of pensions accessed rose to 961,000 – up from 885,000. Laura Purkess, a personal finance expert at Investing Insiders, said: “There has long been concern that uncertainty around government policy is leading people to make rash decisions with their money, and the latest FCA figures appear to solidify those concerns.
“People clearly shouldn’t be making big decisions about their finances based on speculation alone, as often those rumours don’t come to fruition, as was the case with fears about tax-free lump sums being cut.
“The government needs to get a grip on rumours circulating so far ahead of Budgets and address speculation that could damage people’s finances.”
Scott Gallacher, director at Rowley Turton, said: “I’ve had several clients express real concern about the government’s current direction on pensions and tax. That said, in most cases people are best served by sitting tight.”
Samuel Mather-Holgate, of Mather and Murray Financial, said: “Now that IHT is levied on pension savings, it’s the money that you should be spending first… No wonder withdrawals have gone through the roof.”
Eamonn Prendergast, of Palantir Financial Planning, said: “Fear and rumour are a terrible basis for retirement planning, yet speculation has been running unchecked since last year’s Budget.”
Eamonn went on and added: “These pots are meant to last decades, not be raided in panic.”