Michael Summersgill, the chief executive of AJ Bell, noted that changes in tax treatment of pensions are causing a significant shift in customer behavior, leading to increased withdrawals and changes in contributions.
AJ Bell has called on the Treasury to commit to a pension tax lock in the upcoming budget, emphasizing the need for certainty in pension regulations amid fears of tax changes.
Reports indicate that the chancellor, Rachel Reeves, has considered revising pension tax thresholds and relief, affecting retirement savings decisions, which has spurred increased withdrawal inquiries from customers.
With the Fabian Society recommending a drop in tax-free withdrawal thresholds, investment firms like Quilter are witnessing a surge in demands from customers seeking to withdraw their pension funds.
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