Should you take (‘unlock’) your pension tax free cash ahead of the budget?

Are you worried about the budget? Many clients are asking if they should take out all their tax free cash from their pension, in case they reduce the allowance?

This is what I usually say:

-I can't make a recommendation based in rumours
-I can only recommend based on current rules
-If you have no need to take out the money, this could be a poor choice
-Pensions are tax free
-They are inheritance tax free
-They are predominantly for retirement
-If they don't make any changes in the budget, it wouldn't be a good idea
-Whilst there are no guarantees, they normally offer protection, when making such changes

So let's stick to facts and work off what we know.

If anything changes, we will deal with it at the time, and plan accordingly.

The government funded money advisory services commented,

.."nothing has officially been announced or confirmed, so there’s no need to make any quick decisions about your pension right now".

"Importantly, this is a rumour. We’ll only find out if anything is changing (and what any start date would be) when the autumn Budget takes place from midday on 30 October 2024."

Hinting that even if there is a change there will be time to plan for it.

Disclaimer: This is not advice and should not make you take, or refrain from taking any action. If you need advice please get in contact.