{"id":442798,"date":"2025-09-22T07:50:22","date_gmt":"2025-09-22T07:50:22","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/442798\/"},"modified":"2025-09-22T07:50:22","modified_gmt":"2025-09-22T07:50:22","slug":"uk-households-warned-not-to-stockpile-cash-over-fear-and-rumour","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/442798\/","title":{"rendered":"UK households warned not to stockpile cash over ‘fear and rumour’"},"content":{"rendered":"

Retirees in the UK should avoid making rash decisions about their pension cash based on \u201cfear and rumour\u201d, experts have warned.\"UKUK households warned not to stockpile cash over ‘fear and rumour’<\/p>\n

UK households have been warned not to stockpile cash and withdraw money over “fear and rumour”. Retirees in the UK should avoid making rash decisions about their pension cash based on \u201cfear and rumour\u201d, experts have warned.<\/p>\n

Data from the Financial Conduct Authority showed that UK pension savers withdrew more than \u00a370bn from their retirement pots in 2024-25 \u2013 up almost 36% on the \u00a352bn taken out the year before.<\/p>\n

Of this, \u00a318.3bn was tax-free cash \u2013 an increase of 62% on the \u00a311.3bn the previous year. Personal finance experts have blamed \u201cbudget jitters and fiscal rumours\u201d on the trend, ahead of the Labour Party<\/a> Chancellor Rachel Reeves’ Autumn Statement.<\/p>\n

READ MORE UK households urged to spend \u00a31,700 after loved ones die<\/strong><\/a><\/p>\n

Eamonn Prendergast, a chartered financial adviser at Palantir Financial Planning, said pension pots were \u201cmeant to last decades, not be raided in panic. The government must do more to quash rumours early and give clarity.\u201d<\/p>\n

Rachel Vahey at the investment platform AJ Bell said the concern is \u201cpeople aren\u2019t making decisions based on what\u2019s best for them but because they are worried about possible changes to pensions tax incentives\u201d.<\/p>\n

It comes as Chancellor Rachel Reeves has launched an inheritance tax raid on savers in the Budget by making pensions liable for the levy.<\/p>\n

Pensions will be included in the assets that count towards 40 per cent inheritance tax from April 2027, throwing family legacy plans into turmoil.<\/p>\n

\u201cFaced with the prospect of seeing their hard-earned pension funds heavily taxed after their death, many older individuals are considering a different approach: spending more of their pension while they are alive,\u201d Anick Sharma, a financial planner at Videre Financial Planning, says.<\/p>\n

Sharma added: \u201cThe reasoning is simple \u2013 why leave behind wealth that will be significantly eroded by tax when it could be enjoyed in the present?\u201d<\/p>\n

Stephen Lowe at the retirement specialist Just Group said the sums being withdrawn might also reflect concern the Treasury may view tax-free cash as \u201can easy target\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"Retirees in the UK should avoid making rash decisions about their pension cash based on \u201cfear and rumour\u201d,…\n","protected":false},"author":2,"featured_media":442799,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15,961],"class_list":{"0":"post-442798","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-personal-finance","11":"tag-uk","12":"tag-united-kingdom","13":"tag-your-money"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115246860138320197","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/442798","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=442798"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/442798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/442799"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=442798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=442798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=442798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}