Reducing the pension tax-free lump sum is likely to be a “tempting option” for the Treasury to consider as they work to fill the £22bn hole in the public finances. Currently, savers aged 55 and over can withdraw 25 per cent of their pension pot tax-free, however, a think tank is urging Rachel Reeves to reduce this limit to £100,000, potentially affecting one in five retirees. This proposal has sparked widespread concern among pension savers, with many rushing to withdraw lump sums before any potential changes. Standard Life, AJ Bell, and Royal London are reportedly experiencing a surge in inqu…
