UK pensioners urged to avoid withdrawals ahead of Budget due to tax fears and long-term risks.

UK households are being urged not to withdraw pension funds ahead of the autumn Budget, as fears over potential tax changes drive record withdrawals totaling £70.9 billion in 2024/25—a 36% rise from the previous year. Many savers are acting on speculation about potential reforms to tax-free lump sums or inheritance tax, despite no official changes having been announced. Experts warn that panic-driven withdrawals can harm long-term retirement security, especially as only about 30% of first-time accessors received regulated financial advice. Authorities emphasize the importance of seeking professional guidance and avoiding decisions based on rumors, noting that policy changes typically include protections for existing savers.