Fears around additional pension reforms in the upcoming Autumn Budget have led to a 33% increase in SIPP withdrawal requests from Bestinvest’s investors in September.

The financial services firm said the jump, compared to its withdrawal average over the past two years, has largely been driven by those aged 55 and over accessing their 25% tax-free cash lump sum.

Bestinvest suggested that one of the biggest concerns on the Budget is rumours that Chancellor Rachel Reeves may reduce the maximum amount pension savers aged over can withdraw tax-free from their retirement pots.

Similar speculation before last year’s Autumn Budget led to a wave of withdrawals from pensions, with some savers later regretting their decision after realising they did not need the cash immediately and no changes were made.

Concerns that pension tax-free cash could be capped have prompted more savers to access their lump sum early, with Bestinvest withdrawals increased by 33% in September compared to the average for the same month over the past two years.

The size of those withdrawals has increased by 146% at Bestinvest on SIPP withdrawals in the same period.

Bestinvest added that the move away from prioritising pension saving is also evident in broader savings behaviour. While ISA contributions at the financial services firm increased by 38% in September compared to the previous two-year average, SIPP contributions only jumped by 3%.

Personal finance analyst at Bestinvest, Alice Haine, said that pension saving requires commitment from a saver, but also a "stable and consistent approach" from the Government.

Haine added: "This uncertainty can also prevent people from taking full advantage of the many benefits that pensions offer - such as tax relief at their marginal rate of tax when they contribute and the opportunity to grow their wealth free from tax on income and capital gains while the money remains invested.

"Rampant speculation that this tax-free cash benefit could be scaled back has prompted some to access their lump sum early, a move that may not always be in their best interests.

"Pension savers should also be wary about gifting too much too soon to loved ones in response to the Autumn Budget 2024 decision that unspent pension assets will be subject to IHT from April 2027. The decision prompted many to rethink their approach to retirement savings. While pensions were once left untouched to pass on tax-free to loved ones on death, the future tax treatment will be very punitive."

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