More than nine in ten advisers (92%) have received calls from clients about taking tax-free cash and accessing pension savings earlier than planned ahead of the Budget, according to a new report.
Not for the first time, rumours about a potential cut or cap to the 25% tax-free pension lump sum have been circulating ahead of new Chancellor John Healey’s first Budget on 28 October.
A majority (96%) of advisers surveyed by Aberdeen said they were spending more time reassuring or advising clients as a result of the speculation around potential pension tax changes.
Tax-free cash was the single biggest client concern cited by advisers, mentioned by 56% of those surveyed.
Other concerns from clients included concerns around further changes around inheritance tax and pensions (30%) and general uncertainty around the impact of Budget rumours (10%).
Richard Denning, CEO of Aberdeen Adviser, said: “Data from the regulator shows that there was a 16% increase in first-time pension lump sum withdrawals among those taking no financial advice between the 2024 and 2025 tax years when speculation over pension tax changes was last rife.
"However, the number of first-time pension lump sum withdrawals among those that sought advice actually declined during this period by nearly 6%.
“This just goes to show how essential advisers are in times of policy uncertainty. Accessing a pension earlier than planned is an irreversible decision and can have huge consequences for families if done without proper thought or financial advice.”
Over half (57%) of 5,000 retirees surveyed by Quilter withdrew tax-free cash ahead of the Budget with 41% doing so in anticipation of possible Budget changes.
• Aberdeen Adviser surveyed 449 advisers, Financial Planners and Paraplanners on 1 September 2026.