Neal Morris has always been risk-averse. During his career running and selling small businesses, he saved diligently into a self-invested personal pension (Sipp) and had recently started taking out small payments from it.

But swirling rumours of a Labour raid on tax-free pension cash have thrown the 55-year-old’s retirement plans into chaos.

This month, Morris took out £268,275 from his pot – the maximum lump sum that over-55s can withdraw from their pensions tax-free. The Telegraph reported earlier this week that the Government is considering cutting this limit to £100,000.

Morris, from Stourport-on-Severn, said: “It’s the sensible thing to do, with the prospect of the Government making a grab for the lump sum. It would be a sheer risk to leave it invested.”

He does not yet know whether he will put the money in a savings account or government bonds.

Morris is one of dozens of readers who have written in to express concerns over their pensions since the reports of a lump sum cut emerged.

Under current rules, savers can take 25pc of their pot up to the £268,275 limit. The Chancellor hopes slashing this by a third will raise £2bn to tackle the £22bn so-called black hole left by the last government.

After cutting winter fuel payments, the plans have been described as another attack on pensioners and have left many panicking. The Institute for Fiscal Studies (IFS) estimates as many as one in five pensioners will be affected by the rumoured lump sum cut.

It has also added to a climate of fear that Labour will target pensions in the Budget on October 30. Chancellor Rachel Reeves is also reportedly considering cuts to pension tax relief.

Experts are warning savers to avoid making impulsive decisions based on speculation alone.

Claire Trott, of financial advice firm St James’s Place, said: “Moving money from a tax-privileged environment into one where growth and income are taxed, and potentially pushing estates into inheritance tax liability, can have significant implications.”

But for many, such warnings are too late.

‘Why can’t the Government be honest?’

Bob Mak, a 61-year-old, retired detective chief inspector, left the Hampshire police force in 2014. After a costly divorce, his state pension was significantly reduced.

He has spent the past decade working as a programme manager in the international development sector. As retirement approaches, Mak and his wife have saved and planned carefully so he that could afford to retire comfortably in the next 18 months.

But recent rumours have encouraged him to combine the £25,000 he had in one pension with the £60,000 he had built up in his workplace pot. He has withdrawn the full 25pc.

He said: “I thought I may as well do it now. Even if it only costs me £4,000 in tax, I feel I have paid enough. This year I will have paid £16,000 in tax, which I think is more than enough of a contribution to society.

“You make plans based on today’s rules, not thinking they could change. Why can’t the Government be honest?”

John Burnie, 72, was also unsettled by the lack of certainty. He withdrew his remaining tax-free sum of £30,000 from his Standard Life pension ahead of the Budget. After careful consideration, he realised “the overriding motivation was to get the money out,” he said.

“I paid part of a debt off and reinvested it in a fixed-term account, where I’m getting 5.45pc interest.”

A pension raid is not the only concern Burnie has for the Budget. He has two properties – one of which is a £4m house in Chelsea – he was hoping to sell before the Budget, in order to avoid a capital gains tax (CGT) increase. Reports suggest the Government could raise CGT in line with income tax. It would boost the highest rate from 24pc to 40pc.

The move was not a rash decision for Graham Slater, 74, who has been considering making a withdrawal since before the election. He took £72,000 from his pot, keeping some for emergencies and giving £10,000 to each of his four grandchildren.

Slater said: “Based on what the present Government’s stance seems to be, we thought it was time to get the money out and distributed. It also gets the clock ticking on the seven years for inheritance tax purposes.”