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State pensioners have been issued a warning as thousands of retirees risk losing £25,000 in tax-free cash. More than 111,000 people accessed their lump sum in the six months to the end of March 2025, new data has shown.

State pensioners could forfeit up to £25,000 in tax-free pension cash if they make rushed withdrawal decisions. Ahead of the Labour Party Budget on November 26, there have been rumblings of changes to pension tax.

In total, £18.1 billion was accessed across the 2024-25 financial year – a 60 per cent jump on the £11.3 billion taken the year before. The number of savers tapping into their lump sum also rose sharply, up 29 per cent.

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