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

Shackleton secures FCA approval for Lee Equity majority investment

Shackleton secures FCA approval for Lee Equity majority investment

Lee Equity’s investment will support the firm’s strategic priorities

Sahar Nazir
clock 17 November 2025 • 2 min read
Why psychological factors are critical for targeted support's success

Why psychological factors are critical for targeted support's success

Hidden diversity within segments

Greg B Davies
clock 14 November 2025 • 4 min read
Pre-Budget panic has 'got worse' with the current government

Pre-Budget panic has 'got worse' with the current government

‘Over the years the rumours have become more sensational’

Isabel Baxter
clock 14 November 2025 • 2 min read