UK residents withdrew nearly £4 billion from defined contribution pension schemes in a rush driven by fears over upcoming policy changes and tax reforms, highlighting the impact of fiscal speculation on retirement strategies.
UK pension savers pulled £3.9 billion from defined contribution schemes in lump sums between the fourth quarter of 2024 and the third quarter of 2025, with withdrawals rising by £868 million from the previous 12 months as speculation over Budget changes encouraged many to act early, according to analysis of Office for National Statistics data by consultancy Broadstone.
The figures suggest a pronounced pattern around fiscal events. Broadstone said withdrawals reached £1 billion in both the third and fourth quarters of 2024, as rumours circulated ahead of that year’s Autumn Budget. They then eased before climbing again to £990 million in the third quarter of 2025, just before the next Budget.
Under current rules, savers can usually take up to a quarter of their pension pot tax-free. But concerns that ministers might restrict that allowance, or alter wider pension taxation, appear to have prompted a rush for cash.
Broader data points in the same direction. The Financial Conduct Authority, in figures obtained by Evelyn Partners and reported by several industry publications, showed that pensioners took £18.08 billion in tax-free lump sums in the 2024/25 financial year, up 60.7% on the year before. In the six months to March 2025 alone, pension commencement lump sums totalled £10.43 billion, while more than 111,000 savers accessed their cash, a sharp increase on the previous year.
The surge also came against a backdrop of changing policy expectations. Chancellor Rachel Reeves’ 2024 Autumn Budget included plans to bring unused pension assets into inheritance tax from April 2027, a move that advisers said may have encouraged families to accelerate withdrawals. Firms including Broadstone and Evelyn Partners have linked the trend to a mix of policy uncertainty, cost-of-living pressures and higher borrowing costs.
Kelly Parsons, head of DC proposition at Broadstone, said the data showed how vulnerable pension behaviour can be to speculation about tax and policy. She said that drawing money from a pension is both complex and irreversible, and warned that decisions taken on the basis of rumours can have damaging long-term consequences.
Advisers have also raised concerns that many savers are making these decisions without guidance. Money Marketing reported that just under a third of pension plans were accessed with regulated advice in 2024/25, while industry figures showed drawdown sales continued to grow and overall withdrawals climbed sharply. For pension specialists, the message is clear: uncertainty over future tax treatment is already reshaping retirement behaviour.
- https://investment-international.com/News/lump-sum-pension-withdrawals-surge-amid-budget-speculation/ – Please view link – unable to able to access data
- https://www.theactuary.com/2025/09/17/tax-free-lump-sum-withdrawals-607 – In the 2024/25 financial year, UK pensioners withdrew £18.08 billion in tax-free lump sums, marking a 60.7% increase from the previous year. Data from the Financial Conduct Authority, obtained by Evelyn Partners, revealed that the amount taken as Pension Commencement Lump Sums (PCLSs) in the six months up to March 2025 was £10.43 billion, a 36.5% rise from the preceding six months. The number of savers accessing their PCLSs also surged by 33% compared to the same period a year earlier, reaching 111,869. Experts suggest that this surge was influenced by changes and speculations regarding government policy on pension taxation, as well as pressures such as the cost of living and higher interest rates. Additionally, the inclusion of unspent pension assets in inheritance tax calculations from April 2027, as announced in the 2024 Autumn Budget, may have prompted families to act preemptively. Emma Sterland, chief financial planning officer at Evelyn Partners, commented on the figures, stating that it seems certain some of this was prompted by changes, both actual and feared, to government policy on the taxation of pensions, as well as pressures such as the cost of living and higher interest rates. She added that some of the increase in the six months to April was likely to be down to families reacting to the inclusion of unspent pension assets in inheritance tax calculations from April 2027, as announced by Chancellor Rachel Reeves in the 2024 Autumn Budget.
- https://www.pensions-expert.com/law-and-regulation/pre-budget-rumours-spark-record-lump-sum-withdrawals-data-shows/69675.article – UK pension savers withdrew a record £10.4 billion from their pensions using their tax-free cash allowance in the six months to the end of March, according to Financial Conduct Authority data. The figure marked an increase of more than a third on the preceding six-month period and was 72% more than in the six months to the end of March 2024. More than 111,000 people accessed their lump sum in the six months to the end of March 2025, the data showed. The data comes from a freedom of information request by wealth management company Evelyn Partners. In total, £18.1 billion was accessed in the 2024-25 financial year, up from £11.3 billion in the 2023-24 period – an increase of more than 60% – while the number of people accessing their lump sum rose by 29% year-on-year.
- https://www.actuarialpost.co.uk/news/article/rush-for-tax-free-cash-as-withdrawals-soar-72-percent-25560.htm – The UK’s pension savers rushed to withdraw their 25% tax-free cash in unprecedented volumes in the 2024/25 financial year, data obtained by Evelyn Partners reveals. The figures provided by the Financial Conduct Authority show a striking surge in the number and amount of Pension Commencement Lump Sums (PCLS) accessed in the year from April 2024, spanning the period from just before the General Election that brought the current Government to power up to this April. The data shows that: The total amount taken as PCLS by all savers in the six months up to and including March 2025 was £10.43 billion. That was 36.5% up on the £7.65 billion in the preceding six months, and a 72% uplift on the £6.07 billion in the six months to March 2024. The total amount withdrawn in the 2024/25 financial year at £18.08 billion dwarfed the £11.25 billion extracted in 2023/24 and constituted an increase of 60.7%.
- https://www.which.co.uk/news/article/should-you-take-cash-from-your-pension-before-the-autumn-budget-aOGpQ9j2J4FJ – Almost 112,000 people took their 25% tax-free pension lump sum in the six months to March 2025 – a 33% rise on the same period a year earlier. Across the 2024-25 financial year as a whole, the number of people withdrawing lump sums was up 29% compared with 2023-24. The total value of withdrawals climbed from £11 billion to £18 billion, according to Financial Conduct Authority data obtained by wealth management company, Evelyn Partners. The surge came ahead of the 2024 Autumn Budget, when pensions were brought within inheritance tax from 2027.
- https://www.moneymarketing.co.uk/news/fca-reports-pension-withdrawal-surge-amid-iht-fears/ – The FCA has reported a sharp rise in pension withdrawals, with total amounts rising by more than a third in 2024/25. Data covering April 2024 to March 2025 shows 961,575 pension plans were accessed for the first time, up 8.6% on the previous year (885,455). Drawdown sales recorded the largest growth, climbing 25.5% to 349,992 from 278,977 in 2023/24. Annuity sales rose 7.8% to 88,430, while the overall value withdrawn leapt 35.9% to £70.9 billion. Just 30.6% of plans were accessed with regulated advice, down slightly from 30.9% the year before. Defined benefit to defined contribution transfers also continued to fall, dropping to 6,418 from 7,181. Commentators suggested speculation over tax changes, rising living costs and inheritance planning may have driven behaviour. Nucleus technical services director Andrew Tully warned that policy uncertainty “drives poor customer outcomes” and called for a more stable savings framework. He added: “The increase in the number of people accessing their pension is likely to reflect the government’s moves to include pensions within IHT, and wider rumours around the future of the tax-free lump sum. This has caused many people to access tax-free cash and income, potentially to gift to family or shelter from IHT.” He said drawdown remains the dominant solution but expressed concern about savers entering without advice. Quilter head of retirement policy Jon Greer also flagged risks from unsustainable withdrawals: “Nearly seven in ten people are making complex decisions without professional help, which risks leaving many without adequate income later in life.” Broadstone’s Rob Hillock added that rumours about inheritance tax and tax-free lump sums “may have encouraged more savers to front-load withdrawals”. The FCA has collected retirement income data since the introduction of pension freedoms in 2015.
- https://www.international-adviser.com/lump-sum-pension-withdrawals-surge-amid-budget-speculation/ – Pension savers withdrew £3.9 billion in lump sums from the defined contribution pensions
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 28th April 2026, reporting on data from Q4 2024 to Q3 2025. Similar information has been reported by other sources, such as Evelyn Partners and The Actuary, in September 2025. The overlap in reporting dates raises concerns about the originality and freshness of the content. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/pension-withdrawals-surged-36-in-202425-amid-tax-uncertainty-and-less-than-a-third-of-savers-take-advice/?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes a quote from Kelly Parsons, head of DC proposition at Broadstone. However, this quote appears in other sources from September 2025, suggesting potential reuse. ([evelyn.com](https://www.evelyn.com/press-centre/all-press-releases/pension-withdrawals-surged-36-in-202425-amid-tax-uncertainty-and-less-than-a-third-of-savers-take-advice/?utm_source=openai))
Source reliability
Score:
6
Notes:
The article originates from Investment International, a niche publication. While it cites data from Broadstone, a consultancy, and mentions the Financial Conduct Authority (FCA), the lack of direct access to the original FCA data and reliance on secondary sources raises concerns about source reliability and independence.
Plausibility check
Score:
8
Notes:
The claims about the surge in pension withdrawals align with reports from other reputable sources, such as Evelyn Partners and The Actuary. However, the reliance on secondary sources and the absence of direct access to the original FCA data introduce uncertainties regarding the accuracy of the figures presented.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information on the surge in pension withdrawals amid budget speculation, citing data from Broadstone and mentioning the FCA. However, the content overlaps with reports from other sources dating back to September 2025, raising concerns about freshness and originality. The reliance on secondary sources and the absence of direct access to the original FCA data further undermine the reliability of the information. Given these issues, the article does not meet the necessary standards for publication.