Majority Concerned About Rumoured Changes to Pension Tax-free Cash According to Research by Nucleus
By Dominic Sow · 22 October 2025
Three in five (59%) people are concerned about rumoured changes to pension tax-free cash rules in the Autumn budget, research by Nucleus has found.
That is double the amount of those (28%) who reported being unconcerned by the speculation. The remaining 13% said they did not know.
There is ongoing speculation that the amount of tax-free cash available from pensions will be cut in the upcoming Autumn budget on 26 November.
Those aged 55 and above can normally take up to 25% of the value of their pension tax-free, up to a maximum of £268,275. Rumours abound that this maximum could be significantly reduced.
Recent data from the Financial Conduct Authority found there was a 29% increase in people taking only tax-free cash from their pension during 2024/25 when compared to 2023/24. That increase is likely to have been driven by last year’s Budget speculation.
Andrew Tully, Technical Services Director at Nucleus, said: “For the second year in a row the UK faces a lengthy run-up to the Autumn budget. This extended period allows the rumour mill to churn given the Government hasn’t clarified its position. Last year’s speculation of potential changes to tax-free rules saw many investors take lump sums from their pensions, with some trying to reverse those actions when no such rule change materialised. There’s a real sense of déjà vu here.
“Long-term planning needs certainty. Speculation can harm confidence and lead to potentially self-destructive behaviours. Ideally the Government will confirm there will be no change to tax-free cash, at least in this budget or for this Parliament, which will give people the ability to plan for their retirement with more confidence.”
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