Pension savers share stories of rushed decisions before Budget announcement
Pre-Budget speculation about pension tax-free lump sum changes made many people withdraw their money early. Some savers now regret taking out large sums after finding out no changes were made
Recent tax-free pension lump sum rumors caused a lot of un-needed worry before the Budget announcement. Investment firm Bestinvest reports pension withdrawals went up two-times higher in oct-2024 compared to last year
Neal Morris (age 55) took out £268‚275 from his pension pot and bought govt bonds. “They could have made it clear from day-one what they intended to do and not do“ he says; noting that taking the full amount wasnt his best choice
Martin Whapshott a Royal Navy vet feels really bad about his £213‚000 withdrawal (which he made because he didnt trust the governments plans). He put some money in an Isa and some in a general investment account: this means heʼll have to pay extra taxes. His family might face inheritance-tax issues too since private pensions will be taxed after death until 2030
The govt asked pension companies to check what would happen if they cut the tax-free amount from £268‚275 to £100‚000 which made people nervous. Bob Maker a retired detective took out his remaining £6‚500 and put it back into another pension - this is ok because its under the £7‚500 recycling limit
The IFSʼs assessment rings true; allowing rumours to swirl without timely clarification was indeed irresponsible
Claire Trott from St Jamesʼs Place thinks this whole situation put people in a hard spot - making them rush big money choices they might not have wanted to make
