More than a third of people aged between 60-78 have no plans for their tax-free cash, meaning they are risking a knee-jerk reaction to Budget rumours they could regret.

A survey from Hargreaves Lansdown showed that 36% of over 60s said they didn’t know what to do with their tax-free cash.

Less than a fifth, 17%, said they would put it in cash savings, such as an easy access account, while around one in 20, 6%, said they would put it in a current account.

That’s despite the fact that leaving the money in cash long-term risks its purchasing power being eroded by inflation. There’s also the chance it could be frittered away over time, HL warned.

One in 20, 6%, of 60–78-year-olds said they would put their tax-free cash in a stocks and shares ISA. Investing it outside an ISA risks taxes such as capital gains and dividend tax.

Other uses for tax-free cash mentioned included holidays (8%), supplementing retirement income (18%) and giving money to family.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Rumours around pension tax-free cash continue to put people at risk of knee-jerk reactions they may come to regret.”

She pointed out that there will be people who are taking their tax-free cash as part of a long-term plan – for instance to go on holiday, carry out home renovations or gifting money to loved ones. She warned thart doing so without a plan risks poor outcomes.

Ms Morrissey said: "Rumours can be worrying but it’s important not to react in haste to something that may not even happen.”

She said it’s important to highlight those who take their tax-free cash with the view that they could just reinvest it back into their SIPP should the change not happen. “This is something that leaves them at risk of breaching pension recycling rules that could leave them with a sizeable tax charge that could potentially undermine their retirement planning.”

• The survey of 2,000 people was conducted by Opinium on behalf of HL in October 2025.