There has been a surge in the number of over 55s seeking to withdraw cash from their pensions ahead of the Budget amid fears there will be a change to the rules.

Online investment platform Bestinvest said it saw a 33 per cent increase in self-invested personal pensions (SIPP) withdrawal requests in September when compared to the previous two-year average.

It also saw the amount of cash being withdrawn rise, climbing 146 per cent in September.

Currently, pension savers can take out a 25 per cent tax-free lump sum up to a maximum of £268,275 from their pensions from the age of 55 – but there are fears that the lump sum could be reduced in the Budget next month.

While running the Resolution Foundation think-tank, Torsten Bell, now Labour’s pensions minister, advocated in favour of red

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