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Tax free cash

Journalist: Callum Mason, i

ended 05. December 2025

We're looking to put together a piece on whether there was an uptick in pensioners taking their tax free cash prior to the Budget – which we know many advisors, advised against.

Do advisors have data on how much this increased by at their firms in the run up to Budget, or anecdotal evidence of it increasing?
 

2 responses from the Newspage community

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Editor
Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
I've seen an increase in enquiries on this and whilst it's not been right for everyone, there are occasions when taking the tax free cash makes sense. This rumour has been kicking around since pension simplification in 2006 but it has ramped up in the past couple of years. Given the significant tax rises in the past few budgets, it's no surprise the people think that the government are coming for everything and so tax free cash seems a big target. Pensions are not loved but tax-free cash is sacrosanct and is central to ongoing confidence in the system.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
As with any tax raising budget, there’s always a rush to stash the cash from a pension for fear of losing a relief or an allowance. That was no different at this budget, as fears of a tax raid on retirement savings were even greater. Rachel Reeves created and environment of confusion and fear, and many savers made bad decisions that will effect their retirement for years.