AJ Bell CEO Michael Summersgill said pension savers yanked roughly £600 million out of their accounts because they thought Rachel Reeves was about to wreck the tax-free lump sum rules. Thousands of people over 55 pulled cash during September and October, expecting the Treasury to cap the 25% withdrawal perk at £268,275. Reeves ended up leaving it alone, but the damage from months of speculation had already happened.
The government did mess with ISAs, though. Starting in April 2027, anyone under 65 can only dump £12,000 into cash ISAs, even though the total annual limit stays at £20,000. The twist is that HMRC will tax interest on uninvested cash sitting in stocks and shares ISAs for younger savers, and transfers between account types...