Speculation is mounting that the Chancellor may reduce the maximum amount that savers can withdraw tax-free from their retirement funds \u2013 prompting some to pull cash out now.<\/p>\n
There are also fears she could cut tax relief on pension contributions in a desperate attempt to raise cash to plug a hole in her Budget plans.<\/p>\n
Former pensions minister Ros Altmann urged caution.<\/p>\n
‘Damaging policy changes could also undermine the whole concept of pension saving and destroy confidence for the future, leaving millions poorer in later life,’ she said.<\/p>\n
An online parliamentary petition launched last week calling on the Government to rule out both options has now crossed the 10,000 signatures required to force the government to respond.<\/p>\n
If it hits 100,000, the petition will be considered for a debate in Parliament.<\/p>\n
![\"Fears](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/102927535-15186897-Fears_are_mounting_Rachel_Reeves_is_plotting_a_Budget_tax_raid_o-a-8_176035644346.jpeg\")
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Fears are mounting Rachel Reeves is plotting a Budget tax raid on pensions<\/p>\n
Tom Selby, director of public policy at broker AJ Bell, which launched the petition, said: \u2018Pension savers across the UK have sent a clear message to the Chancellor: we need a firm commitment to a Pension Tax Lock to allow people to plan ahead with certainty.<\/p>\n
\u2018Now the Government needs to step up and deliver its end of the bargain with a public pledge not to tinker with the cornerstone of long-term retirement planning.<\/p>\n
\u2018This government insists it is on the side of those who work hard. Now is the time to show it really means that.<\/p>\n
\u2018Anyone sacrificing take-home pay today to save for the future deserves a concrete promise from the Government that they will have the right to access their pension on the same terms as the generation that came before them.\u2019<\/p>\n
Savers are permitted to withdraw 25pc of their pension tax-free, up to a maximum level of \u00a3268,275, from the age of 55.<\/p>\n
Some think that will be a tempting target for a raid by the Chancellor as she bids to fill in a financial black hole estimated at \u00a330bn in next month\u2019s Budget.<\/p>\n
But opponents of such a move argue that it would be unfair to savers who have carefully planned their financial futures.<\/p>\n
Fear of such a tax raid ahead of last year\u2019s Budget prompted an avalanche of withdrawals back then \u2013 even though the tax changes did not materialise.<\/p>\n
Many later rued the decision.<\/p>\n
It is also feared Reeves could reduce tax relief on the pension contributions of higher-rate taxpayers in a bid to raise cash.<\/p>\n
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