Leicestershire Live: Pensioners face 'mortgage crisis' over £100,000 change

Pensioners hoping to use a sizable tax-free lump sum from their pension pot to pay off mortgages could be in for a shock, amid concerns that the cap may be limited to £100,000. It's rumoured that Chancellor Rachel Reeves is considering slashing the minimum amount people can withdraw from their pension savings tax-free from the current limit of £268,750 down to £100,000

Harps Garcha, director at Brooklyns Financial, shared further concerns regarding the impact on retirees: "The potential changes to the Tax-Free Lump Sum policy could cause undue stress for many who had planned to use it to reduce their mortgage. For those nearing retirement, this sudden shift leaves limited options to adjust their financial plans, potentially forcing some to sell and downsize. This policy risks disproportionately impacting older individuals, who may now face unexpected financial challenges at a crucial time in their lives."

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