{"id":188915,"date":"2025-06-16T12:00:26","date_gmt":"2025-06-16T12:00:26","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/188915\/"},"modified":"2025-06-16T12:00:26","modified_gmt":"2025-06-16T12:00:26","slug":"thousands-aged-55-and-over-urged-to-withdraw-cash-after-hmrc-rule-change","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/188915\/","title":{"rendered":"Thousands aged 55 and over urged to &#8216;withdraw&#8217; cash after HMRC rule change"},"content":{"rendered":"<p>Hundreds of thousands of savers raided \u00a32.2bn from their pensions early last year thanks to rising living costs and political uncertainty.<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/0_atm.jpg\" alt=\"Thousands aged 55 and over urged to 'withdraw' cash after HMRC rule change\" loading=\"eager\"  \/>Thousands aged 55 and over urged to &#8216;withdraw&#8217; cash after HMRC rule change<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">UK households are scrambling to &#8220;withdraw&#8221; their pension pots. Hundreds of thousands of savers raided \u00a32.2bn from their pensions early last year thanks to rising living costs and political uncertainty.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">HMRC figures reveal 120,000 people aged 55 to 56 withdrew taxable sums from their pensions in 2023 &#8211; 24, an 18 per cent rise over five years.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Once workers reach 55, they can take 25 per cent of their pension tax-free, up to a maximum of \u00a3268,275. After that, withdrawals are taxed as earnings. Jason Hollands, of the investment platform Bestinvest, said: \u201cDemographic patterns will be a factor. But other possible influences are a rise in business exits and second property disposals ahead of the election enabling more people to take early retirement.\u201d<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \"><a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/whats-on\/shopping\/uk-households-warned-over-supermarket-31838802\" target=\"_self\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\"><strong class=\"Strong_strong__e2x35\">READ MORE Households warned over supermarket item which has left 95 ill and 58 in hospital<\/strong><\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Daniel Hough, of wealth manager RBC Brewin Dolphin, said: \u201cRetirement is lasting longer for people \u2013 by accessing their pensions at 55, there will be more pressure on providing a sustainable income throughout retirement, however long it may last.\u201d<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Andrew Tricker, of Lubbock Fine Wealth Management, who obtained the data, said: \u201cThe large number of savers withdrawing from their pensions before actually retiring is very concerning. Many of them are withdrawing too much \u2013 and too early.\u201d<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Experts warned savers could be tempted to spend excessively out of their pensions in order to avoid an inheritance tax bill after a rule change from the <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/all-about\/labour-party\" target=\"\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\">Labour Party<\/a> government.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Kate Smith, of pensions firm Aegon, said: \u201cThe expectation is that those individuals with large estates will access their pensions earlier to avoid inheritance tax, and later life tax planning will become increasingly important.\u201d<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Mr Hough said the proposals had caused \u201cconcern and some confusion\u201d among those nearing retirement.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Chancellor Rachel Reeves previously announced the removal of inheritance tax exemptions on pension pots from 2027.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \">Currently, savers can pass on their retirement funds tax-free, but this change has prompted many to reconsider their withdrawal strategies.<\/p>\n","protected":false},"excerpt":{"rendered":"Hundreds of thousands of savers raided \u00a32.2bn from their pensions early last year thanks to rising living costs&hellip;\n","protected":false},"author":2,"featured_media":188916,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,1016,2499,16,15],"class_list":{"0":"post-188915","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-hmrc","11":"tag-personal-finance","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114692936457979449","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/188915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=188915"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/188915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/188916"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=188915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=188915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=188915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}