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A financial adviser in conversation with an older couple, with papers on a desk in front of them

Don’t default to pension withdrawals in later life lending, advisers warned

Later life lending advice should explore all the options available to homeowners instead of defaulting to tax-free pension lump sums, Key Equity Release has warned. HMRC data analysed by Key shows a record 1.27 million people made flexible withdrawals from pension funds in the 2025/26 tax year, many of whom the equity release adviser says will have taken advantage of

A financial adviser in conversation with an older couple, with papers on a desk in front of them

Don’t default to pension withdrawals in later life lending, advisers warned

Later life lending advice should explore all the options available to homeowners instead of defaulting to tax-free pension lump sums, Key Equity Release has warned. HMRC data analysed by Key shows a record 1.27 million people made flexible withdrawals from pension funds in the 2025/26 tax year, many of whom the equity release adviser says will have taken advantage of

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