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Savers are rushing to withdraw money from their pension pots in anticipation of a potential tax raid by Rachel Reeves. The Labour Party Chancellor Ms Reeves could cut the amount of money savers can take from their pensions as a tax-free lump sum.

Retirees are "panicking", the Telegraph reports, because they are currently entitled to take 25 per cent of their pension pot tax-free once they reach the age of 55, up to a maximum of £268,275. Faye Church, a wealth manager at Rathbones, said “heightened anxiety among clients” had led to a recent surge in “the volume and complexity of queries”.

Jason Holland, from Evelyn Partners, said that the possibility of a tax raid on pensions is “one of the main topics that is coming up in discussion”.

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