Pensions industry urges Reeves to rule out Budget 'raid' as savers seek certainty

The chief executive of Britain’s largest pensions firm has urged Chancellor Rachel Reeves to dispel speculation that she will use the upcoming Budget to impose new levies on retirement savings, saying savers need certainty to plan for the long term.

Andy Briggs, chief executive of Phoenix Group, said speculation about pension rule changes had prompted damaging behaviour from customers in the past and urged the Chancellor to stop pensions becoming an area of “regular changes”. "You need people to feel confident that if they save their hard‑earned money, they’re going to be rewarded for doing so," Briggs said.

Pension savers in the UK can currently withdraw up to 25% of their nest egg tax‑free from age 55, up to a maximum of £268,275. The rules were the subject of intense speculation in the run‑up to last year’s Budget, prompting a surge of withdrawals by some savers who feared changes; many who pulled money out prematurely were left worse off, industry executives say.

The next Budget is set for November 26, and the Chancellor faces pressure to close a fiscal shortfall estimated by some officials at about £50 billion. That gap has renewed calls from parts of Whitehall and pundits for measures that could include adjustments to pension tax relief or withdrawal allowances. A Treasury source last week said the area was not currently being looked at, but Reeves has not publicly ruled out reforms.

Industry voices have pressed for clarity. Michael Summersgill, chief executive of broker AJ Bell, and former Institute for Fiscal Studies director Paul Johnson have urged the Chancellor to provide certainty about retirement savings rules to avoid repeated market disruption. Briggs warned that continuing uncertainty would risk undermining consumer confidence and reduce long‑term saving.

Consultants Lane Clark & Peacock (LCP) published a report highlighting the risks of curbing pensions tax relief for higher earners. Steve Webb, a former pensions minister and partner at LCP who co‑authored the report, said reforms might raise far less revenue than forecast, breach manifesto commitments to workers or impose extra costs on employers. Webb added that the political backlash could recall previous fiscal U‑turns described as an “Omnishambles”.

Industry representatives argue that sudden or poorly signalled changes to pension tax settings can prompt rushes to withdraw funds, distort retirement planning and increase costs for employers who sponsor workplace pensions. They call for firm wording from the Chancellor to prevent speculation from driving repeat episodes of pre‑emptive action by savers.

The Treasury has not issued a formal comment on the calls from industry leaders. As the November Budget approaches, pension providers and advisers say clear and early guidance will be crucial to avoid market disruption and to protect the retirement incomes of millions of savers.