Burnham urged to rule out Budget pension raid as savers pulled £91bn in TWO YEARS

From the Newshound archive · first published 24 September 2026 · last updated 25 September 2026.

Savers have pulled £91bn from pension pots in just two years, a 70% surge driven by fear of Labour tax raids, according to new Financial Conduct Authority figures. The pension industry is now demanding Chancellor John Healey rule out a cap on tax-free lump sums before the October 28 Budget, warning that unchecked speculation is causing irreversible damage to retirement plans. David Ives, 71, a retired central heating engineer from Minehead, Somerset, already hands HMRC £129.60 in tax on a state pension of £13,199 — just above the frozen £12,570 allowance.

Tax-free cash withdrawals alone hit £22bn last year, nearly three times the pre-2024 election average of £8bn a year.

AJ Bell chief Michael Summersgill warned that confirming pension tax stability 'would solve the problem overnight without a penny of new Treasury spending.'

Among savers with pots of £250,000 or more, those moving into drawdown more than doubled in a single year, rising from 34,712 to 75,968.