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Rachel Reeves has been urged to cut the 25 per cent tax-free pension lump sum to £100,000 in her forthcoming Autumn Budget. The Labour Party Chancellor will deliver her fiscal address on November 26.

Ahead of it, a leading think tank has claimed the current lump sum system is too generous. Writing for the Fabian Society, Andrew Harrop, public policy expert said that "pension tax rules are too generous and clearly unfair."

Harrop explained: "53 per cent of all pension tax relief went to the fifth of employees on higher tax bands." He said the government should reduce the amount of tax-free cash that can be taken at retirement from £268,000 to £100,000.

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Mr Harrop said: "These are progress

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