There were surges in lump sum withdrawals from private sector DC pensions in Autumn 2024 and 2025 as savers acted in anticipation of rumoured Budget changes.
The surge has been revealed through analysis of new ONS data by consultancy Broadstone.
The figures show that pension savers withdraw £3.9bn in lump sums from DC pensions in Q4 2024–Q3 2025, up by £868m on the previous 12-month period. It was an increase of 81%, or £1.7bn, compared to the same period in 2022/23.
Lump sum withdrawals hit a peak of £1bn in both Q3 2024 and Q4 2024 around the Autumn Budget 2024.
The pension cash grab fell back before rising to a 2025 peak of £990m in Q3 2025 ahead of the subsequent Autumn Budget 2025.
Savers acted on rumours that the Government was considering restricting the pension tax-free allowance in both the Autumn Budget 2024 and 2025 as it looked to increase its tax revenues.
Broadstone said the trend of increasing lump sum access is expected as more adults with DC pensions reach Normal Minimum Pension Age. However, the timing of recent spikes suggests that saver behaviour is being influenced by policy uncertainty and speculation around potential changes to the tax treatment of pension lump sums.
Kelly Parsons, head of DC proposition at Broadstone, said: “This data highlights just how sensitive pension savers can be to speculation around tax and policy changes. It demonstrates the damaging and long-lasting negative impacts that rumour-mongering around pension policy and fiscal events can cause.
“Taking money from a pension is a complex and irreversible decision so it is critical that people aren’t making these important choices based on rumour or without full awareness of the consequences. That’s where better financial education and clearer guidance really do matter.”
She said that as the DC market grows, employers will have a bigger role to play in supporting people as they navigate these decisions. “That means clearer communication and making sure staff can access the right guidance and support, so they’re not just reacting to headlines but making choices that genuinely support their long-term retirement outcomes.”