Labour is grappling with a potential pensions exodus as individuals rush to withdraw money ahead of the Budget due to tax concerns. The government has been alerted that pensioners are taking out money prematurely in anticipation of possible tax changes in the Autumn Budget. Wealth manager Quilter, along with investment platforms AJ Bell and Hargreaves Lansdown, have warned of excessive "uncertainty" regarding imminent changes.
They pointed out that this uncertainty is leading more people to contemplate withdrawing from their pension pots amid predictions of a potential reduction in pension tax relief. Steven Levin, CEO of Quilter, which manages £113bn, sent a letter to the Treasury earlier this week. In it, he noted that the wealth manager was "experiencing a significant increase in calls from customers wanting to adjust their retirement plans.
" According to the Financial Times, Mr Levin attributed this to " the recent Budget warning, which indicated 'painful' changes to taxation but left a gap in information other than ruling out changes to major taxes". Investment experts have raised the alarm regarding potential tax complications anticipated in this month's budget, against the backdrop of repeated government suggestions of a £22bn shortfall in public finances. Speaking to the paper, Tom Selby, public policy director at AJ Bell, commented: "Once you've taken your tax-free cash you can't put the toothpaste back in the tube.
", reports the Express . He cautioned that rushing.