Enquiries from clients about taking lump sums from their pensions have jumped 45% over the past month, reveals new internal data released by deVere Group, one of the world’s largest independent financial advisory organisations.
The sharp increase comes as widespread speculation mounts that Chancellor Rachel Reeves will use the 26 November 2025 Autumn Budget to cut or cap the tax-free pension lump sum, currently allowing savers to withdraw up to 25% of their pension pot tax-free, up to around £268,275.
Rumours in recent weeks have suggested the government could lower this limit to £100,000, or even as little as £40,000, as part of efforts to raise revenue and reform pension tax relief.
While no official decision has been announced, the uncertainty has prompted a marked rise in clients seeking guidance on how potential changes could affect their retirement plans.
Nigel Green, CEO of deVere Group, said, “There’s a growing sense of urgency among pension savers who fear that one of the most valuable and popular tax benefits in the UK could soon be scaled back.
“A 45% rise in enquiries in just one month underscores how seriously people are taking the speculation.”
He continues: “Many clients are asking whether they should act now to secure their existing entitlement before the Budget, or wait for clarity.
“The answer depends on individual circumstances; but what’s clear is that confidence in the long-term stability of the UK pension system is being tested.”
The chief executive adds that any reform to the tax-free lump sum would have significant behavioural and economic consequences.
“If the Chancellor cuts the allowance, it could trigger a rush of withdrawals ahead of the Budget, particularly among those approaching retirement. This would be counterproductive, not just for individuals potentially depleting their pots early, but for fiscal planning too.”
He also warns that changes could erode trust in pension policy consistency. “People plan for decades on the basis of the rules in place. If the government moves the goalposts, it undermines the incentive to save for retirement and risks pushing people towards less efficient or riskier investment routes.”
The deVere CEO says the surge in client activity shows a broader truth: that financial planning is now being driven by policy risk as much as market risk.
“The speculation alone has already changed behaviour,” says Nigel Green. “Even if no change is ultimately made, the mere possibility of it has caused many to reassess their retirement strategies. And that’s a warning signal for policymakers.”
He concludes: “Uncertainty over the tax-free lump sum is causing unnecessary anxiety for millions of pension savers.
“Clear communication from the Treasury would go a long way to stabilising sentiment and restoring confidence. Individuals should seek professional advice before making any irreversible pension decisions.”
