Overview
- HMRC repaid more than £44.1 million to nearly 14,000 people after flexible pension withdrawals in January to March 2026, with the typical refund about £3,160.
- Reclaim forms fell about 9% from a year earlier, yet the total returned stayed close to last year, which points to larger overpayments per person.
- The issue stems from PAYE’s emergency tax codes, which assume a one‑off withdrawal will repeat each month for a year and so take too much tax up front.
- Affected savers can claim refunds using HMRC forms P53Z, P50Z or P55, and guidance says most repayments arrive within about 30 days.
- Advisers suggest making a small first withdrawal to trigger the correct code before taking a larger sum, with risk rising as the personal allowance stays frozen to 2031 and the access age moves to 57 in 2028.