Thousands of retirees who rushed to withdraw tax-free cash from their pensions ahead of last year’s Budget now regret doing so, according to wealth managers.
There were concerns prior to Reeves’ Budget that the 25 per cent tax-free lump sum retirees can currently take from the pension pots could be reduced or capped.
As such, many providers saw a surge in people taking out their cash, although, no changes were ultimately announced.
Quilter, a wealth management firm, found that six in 10 of the pensioners it surveyed, said they regret withdrawing tax-free cash before the fiscal event.
More than four in 10 of those who took money out said they did so specifically because they feared the rules would change, whilst almost two-thirds now say they wish they had not withdrawn cash.
