The Government has been issued a warning amid rumours it could soon reduce the tax-free lump sum savers can withdraw from their pension.
It is feared the move may even see NHS workers mount a "return to pay unrest and strikes". Chancellor Rachel Reeves is reportedly mulling plans to cap withdrawals at £100,000 in the Budget on October 30 in a bid to shore up the public finances.
According to the Telegraph, officials are said to have asked one of the UK's largest pension providers to review the impact of such a move, which would reduce the limit to almost a third of its current level.
But alarms are being sounded that such a move could "stoke fear" among public sector workers and even see a return of strike action within the health service.
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