Concerns over a potential pensions tax raid have sparked a flurry of withdrawals totalling nearly £71 billion, as reported by the City watchdog. The Financial Conduct Authority disclosed that savers withdrew £70.9 billion from their funds in 2024/25 – a significant increase of 36% from the previous year's £52.2 billion.

The number of pensions accessed for the first time also saw a considerable rise, escalating to 961,575 from 885,455. This rush began in the lead-up to last year's Autumn Budget, amidst widespread speculation that Chancellor Rachel Reeves would cut the entitlement to tax-free lump sums or fully subject pension pots to inheritance tax.

Withdrawals picked up pace once more after it was confirmed by ministers that pensions would be subject to inheritance tax, stoking fears of

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