Amidst increased press coverage ahead of the upcoming Budget, we have seen a noticeable change in both customer contributions to pensions and tax-free cash withdrawals. While these behavioral changes do not have a material impact on AJ Bell's business performance, they represent significant decisions for individual customers.
From the age of 55, people can currently take out 25% of their pensions up to the maximum amount of 268,275 tax-free. There are fears Labour will lower the cap to £100,000.
AJ Bell has seen a large amount of people withdrawing their money amid fears of the changes to the tax-free cap. The investment group warns that there has been significant changes in how people are saving for their pension due to concerns about upcoming tax raids during the Autumn Budget.
We have therefore made representations to the Treasury calling for a commitment to a pension tax lock in the Budget, guaranteeing stability in key pension tax legislation for at least this parliament.
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