Rachel Reeves is coming after our pensions in the Budget - here's how YOU can fight back

Actually, I was already worried, but now she's given us something new to fret over. The Chancellor has asked pensions minister Torsten Bell to draft this autumn's Budget, and she couldn't have chosen a bigger tax fanatic if she tried.

Bell is a rising Labour star who made his name running the left-wing Resolution Foundation, where he spent years dreaming up ways to squeeze more money from pensioners, homeowners and savers. Now Reeves has handed him the chance to turn those dreams into painful reality for the rest of us.

Yesterday, I listed every tax grab he's floated. Now I suspect there were too many of them for readers to take in.

So I'm going to focus on the likely impact on just one area, pensions, to see where Bell might strike.

But it's important to remember this: not every half-baked think-tank wheeze makes it into law. Half the rumours splashed before each year's Budget didn't happen. Those who acted on the assumption they would, later regretted it. Pension planning is too important to gamble on speculation. So deciding what to do now is tricky.

Bell has previously described the state pension triple lock as "silly", but scrapping that is way above his pay grade.

He'll have more influence over our pensions tax breaks. He has suggested capping tax-free cash at £100,000, far below today's £268,275 maximum, which could raise £2billion a year for the Treasury. He's even mooted slashing it to £40,000.

Would Reeves dare? I don't know. Nor does Bell. I doubt Reeves does either at this point. It would be hugely unpopular and open to charges of retrospective taxation. For now, the risk hangs in the balance.

So what should savers do?

Money left in pensions grows free of tax, so withdrawing it early can backfire. Anything above the 25% tax-free lump sum is added to earnings and taxed, with large one-off withdrawals potentially shoving people into higher 40% and 45% brackets. So tread carefully.

Cash taken out and dumped in a savings account may earn a lower return than if left invested. Plus savings interest may be taxable as well.

If you were planning to draw on your pension anyway, it may make sense to accelerate the decision. But stripping out the lot just in case rules change could be a costly mistake.

Tax relief on pension contributions is a juicy target. This costs the Treasury almost £78billion a year, with 40% or 45% taxpayers getting most of the benefit.

Bell has previously suggested replacing it with a flat rate of, say, 25% or 30%, which would help basic-rate savers but punish the better-off. Treasury officials have floated similar suggestions for years. This Budget, it feels more likely.

Here the advice is simpler. Pension contributions are usually worthwhile, especially for higher earners, so consider making them if you can. This applies at any time.

Carry-forward rules allow savers to use unused allowances from the previous three years, creating an opportunity to shelter even more money. Consider taking independent financial advice.

However, bear in mind that pensions are locked away until at least age 55, rising to 57 in 2028. Stock markets are volatile, and capital is at risk. But pensions are still a great home for long-term savings.

With the Budget pencilled in for late October or early November, there's time to act.

The key is not to panic. But with Bell whispering in Reeves's ear, it makes sense to keep plans under review and, where possible, make the most of the today's tax breaks before Bell wrings the life out of them