Abolishing tax-free cash 'highly unlikely' and withdrawals market impact minimal

‘UK pensioners are too small a fish in the global monetary system’

Sahar Nazir
clock • 3 min read

Outright abolition of the pension commencement lump sum (PCLS) is “highly unlikely” and even a large wave of withdrawals would have little effect on the UK stock market, experts have told PA.

LCP partner Steve Webb said that most savers hold only a small proportion of their pension in UK-listed equities, meaning fears of a pre-budget sell-off triggered by speculation over future PCLS reform are largely unfounded. Questions submitted by numerous financial advisers during a recent Professional Adviser inheritance tax (IHT) webinar centred on whether speculation about future cuts to PCLS could prompt savers to withdraw en masse, potentially forcing large-scale sales of pension assets and hurting markets. However, Webb, along with other experts said the premise misunderstands ...

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 Your profession

Feel Good Friday: Royal London opens applications for £10,000 women and girls' rugby grant

Feel Good Friday: Royal London opens applications for £10,000 women and girls' rugby grant

Third year of annual Championing Women and Girls’ Grassroots Rugby Award

Professional Adviser
clock 05 June 2026 • 1 min read
Cohabitation reforms to offer unmarried couples 'more financial security'

Cohabitation reforms to offer unmarried couples 'more financial security'

Government launches consultation

Sophia Panayi
clock 05 June 2026 • 2 min read
M&A platform finds strong pipeline of non-PE acquirers

M&A platform finds strong pipeline of non-PE acquirers

Data from Project Exit shows regional and local advice firms make up more than half of buyers

Isabel Baxter
clock 05 June 2026 • 2 min read