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 ...

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