A stark pensions warning has been raised as the Labour government’s Chancellor, Rachel Reeves, draws up plans that could see retirement funds take a hit.
UK households may feel the pinch if they shuffle their pension savings in anticipation of Reeves’s suspected Autumn Budget tax crackdown, risking substantial penalties in the process.
Experts are sounding the alarm that Reeves could clamp down on pension tax relief. As things stand, pensioners can withdraw 25 percent of their nest egg free from tax, capped at £268,275, yet this generous allowance may be under threat after October 30.
For those considering relocating their pension wealth, there could even be a possible punitive 70 percent charge based on the destination of their transferred assets.
Head of retirement analysis at Hargreaves Lansdown, Helen Morrissey, has issued a cautionary note to individuals on the brink of drawing funds from their pension pot.
She commented: “Ripping money …