Three in five (61%) pension savers who withdrew tax-free cash from their pension ahead of last year’s Budget regret doing so, according to a new report.
Over half (57%) of 5,000 retirees surveyed by Quilter withdrew tax-free cash ahead of the Budget with 41% doing so in anticipation of possible Budget changes.
There was speculation ahead of the 2025 Budget that the Government had plans to reduce or cap the 25% tax-free lump sum. While no formal proposal was made, rumours persisted and created uncertainty among retirees.
Quilter called on the Chancellor to prevent damaging pension speculation ahead of the 2026 Autumn Budget, due to be announced in October or November.
Jon Greer, head of retirement policy at Quilter, said: “This data shows how speculation ahead of last year’s Budget led many retirees to act out of fear of losing what is a vital component of their retirement provision rather than genuine need at that moment. The fact so many regret doing so highlights the real harm that can come from making decisions driven by rumour.
“This research underlines just how sensitive retirement planning has become to continuous budget speculation. Those saving towards and planning their retirement need and deserve certainty, and there should be a clear commitment to avoid another prolonged period of speculation ahead of future Budgets.”
The research also looked at how the tax-free cash withdrawn ahead of the Budget was used.
Retirees told Quilter they spent the money on home improvement s(15%), to cover healthcare costs (15%), gifted it to family members (14%) or used it to meet day-to-day living costs (14%).
• Censuswide surveyed 5,002 UK retirees between 23 March and 7 April on behalf of Quilter.