{"id":147492,"date":"2025-09-19T14:08:12","date_gmt":"2025-09-19T14:08:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/147492\/"},"modified":"2025-09-19T14:08:12","modified_gmt":"2025-09-19T14:08:12","slug":"rachel-reeves-could-make-lump-sum-pension-change-with-uk-households-warned","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/147492\/","title":{"rendered":"Rachel Reeves could make lump sum pension change with UK households warned"},"content":{"rendered":"

Ms Reeves rules out the lump sum cut, according to personal finance experts.\"MsMs Reeves rules out the lump sum cut, according to personal finance experts.<\/p>\n

Rachel Reeves could make a lump sum pension change – with UK households warned. Pension savers are at risk of costly mistakes unless Labour Party Chancellor Ms Reeves rules out the lump sum cut, according to personal finance experts.<\/p>\n

They warn the Chancellor’s refusal to rule it out is causing anxiety and uncertainty, leaving savers to make ‘hasty decisions’ they could come to regret.<\/p>\n

Jon Greer, of wealth manager Quilter, said: “When it comes to pensions, that’s dangerous. Decisions like taking a tax-free lump sum are often irreversible.”<\/p>\n

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Former pensions minister Steve Webb, now a partner at consultancy LCP, and a former Liberal Democrats<\/a> and Conservative Party<\/a> coalition government cabinet member, said: “If the Government has no plans to change pension tax relief or the tax-free lump sum then it would be helpful if they made a commitment not to do so for the whole of the parliament.<\/p>\n

“That way people could plan for their futures with a degree of certainty, rather than [this] constant uncertainty.”<\/p>\n

Rachel Vahey, head of public policy at the firm, said: “We need to put a stop to this speculation by ruling out changes to tax relief or tax-free cash, at least for this parliament.<\/p>\n

‘” pensions tax lock would give the stability people desperately need to plan for retirement with confidence.”<\/p>\n

She said cutting the tax-free lump sum “would cause an outcry, especially amongst public sector workers”, adding: “The last thing this Government needs is yet another U-turn.”<\/p>\n

As it stands, people with a private pension can access their money at 55 \u2013 rising to 57 from April 2028 \u2013 and can withdraw 25 per cent tax free, up to a maximum of \u00a3268,275.<\/p>\n

But the Chancellor could cap the amount that can be withdrawn tax free, it is feared. Labour Party<\/a> pensions minister Torsten Bell previously called for a \u00a340,000 cap while he was head of think-tank the Resolution Foundation.<\/p>\n

Shadow Chancellor Mel Stride said: “It’s clear tax rises are on their way thanks to Labour’s economic mismanagement. Under Labour, nothing is safe \u2013 not your pension, your job, your pay packet, your home.”<\/p>\n","protected":false},"excerpt":{"rendered":"Ms Reeves rules out the lump sum cut, according to personal finance experts.Ms Reeves rules out the lump…\n","protected":false},"author":2,"featured_media":147493,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,2053,4174,4175,56,54,55],"class_list":["post-147492","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-labour-party","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/147492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=147492"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/147492\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/147493"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=147492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=147492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=147492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}