Rachel Reeves is coming under mounting pressure to rule out a 'knee-jerk' raid on pension lump sums before next month's Budget.
Speculation is mounting that the Chancellor may reduce the maximum amount savers can withdraw tax-free from their retirement funds – prompting some to pull cash out now.
But the panicked withdrawals may prove costly as the money removed from pension funds will, once taken out, no longer earn tax-free returns.
Two former pensions ministers, Ros Altmann and Steve Webb, have called on the Government to end the uncertainty.
Baroness Altmann claimed cutting the threshold would be a 'hit the rich' policy that mainly harms the middle-class.
