Pensions tax-free cash untouched – but what about those who acted pre-Budget?

No lump sum change should be ‘welcomed’ but damage cannot be undone

Isabel Baxter
clock • 5 min read

Individuals who took the leap and withdrew pensions tax-free cash fearing Budget changes will need to look to other investment strategies, financial services experts have said.

Despite the high amount of speculation, chancellor Rachel Reeves decided not to introduce new limits on pensions tax-free lump sums in yesterday's (30 October) Autumn Budget. It was initially reported that Reeves was considering a £100,000 cap on tax-free cash from pensions. However, she did not make any changes. The Telegraph reported the cap was being considered as part of the government's economic plan in a bid to plug the £22bn public finance deficit. It said the lump-sum limit may be reduced by two thirds to £100,000 "after recommendations from think tanks". The Institute for ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

FCA data reveals 'notable advice gap' in drawdown

FCA data reveals 'notable advice gap' in drawdown

Almost half of pots entering drawdown now do so without regulated advice

Sophia Panayi
clock 24 September 2026 • 2 min read
Action 'needed now' on salary sacrifice to minimise disruption

Action 'needed now' on salary sacrifice to minimise disruption

LCP says early preparation will help employers navigate the transition

Jonathan Stapleton
clock 24 September 2026 • 2 min read
Self-employed face retirement saving 'obstacle course'

Self-employed face retirement saving 'obstacle course'

‘Structural gap’ in participation between employees and self-employed

Martin Richmond
clock 22 September 2026 • 4 min read