Britons are pulling more cash from their pensions as they fear tax rises in the Budget, according to the boss of one of Britain’s largest investment platforms.

AJ Bell chief executive Michael Summersgill said savers were increasing their tax-free cash withdrawals from their pensions ahead of the Chancellor’s speech on October 30.

Rachel Reeves is poised to launch the biggest Budget tax raid in history which will involve as much as £35 billion of tax rises – the most on record in cash terms – as she protects her commitment to ending “austerity” and attempts to ensure departments avoid real-terms cuts in spending.

Under present rules, savers can usually take up to 25pc of the amount built up in any pension as a tax-free lump sum, up to a limit of £268,275. 

Mr Summersgill said: “Pensions are the primary retirement savings vehicle in the UK and customers are unsurprisingly sensitive to changes in their tax treatment. 

“Amidst increased press coverage ahead of the upcoming Budget, we have seen a noticeable change in both customer contributions to pensions and tax-free cash withdrawals.”

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