Rathbones have warned investors not to react to Budget rumours

Investors are being urged not to make any kneejerk pension decisions which could lead to irreversible consequences, as the Budget rumour mill begins to stir up financial worries.

Wealth manager Rathbones has warned that fears over pension tax changes have caused another surge of premature withdrawals of the 25 per cent tax free lump sum.

This follows speculation that Chancellor Rachel Reeves is set to scrap the tax free allowance in the looming Autumn Budget.

However, according to Rathbones, the decision to withdraw was the biggest regret of those who opted to do so in the run up to Reeves’ maiden Budget last year.

Nearly 30 per cent regretted their withdrawal, after speculation that capital gains tax (CGT) rates could

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