Budget today: How will it affect my savings and what should I do?
The IndependentGet the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Reports that pensioners could have tax breaks cut or axed led to savers withdrawing chunks of their retirement pots ahead of Chancellor Rachel Reeves’s big announcement. “The main thing is not to be rushed into action by speculation ahead of the actual announcement,” advises Sarah Coles, head of personal finance at stockbroker Hargreaves Lansdown. “If you do want to withdraw some pension cash, put it into an ISA, which protects interest payments and other gains from tax, just like a pension does,” Coles says. “Now that interest rates are higher, it is worth being aware that £1,000 of interest can be received tax-free for lower-rate taxpayers, but only £500 for higher-rate payers.” There is also speculation Reeves may increase capital gains tax or cut allowances, although she is likely to leave the tax on second homes alone.
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