Over a third (36%) of people aged between 60 and 78 don’t know what they are going to do with their tax-free cash, Hargreaves Lansdown has revealed.

The financial services firm’s latest survey of 2,000 people comes ahead of the upcoming Autumn Budget.

Earlier this month, the FT reported that the Chancellor is considering cutting the tax-free allowance on cash ISAs.

The survey found that 17% of those aged 60 and 78 said they would be put cash savings into an easy access account, while 6% would put it into a current account.

A further 6% stated that they would put it in a stocks and shares ISA, while 18% would supplement retirement income and giving money to family.

Hargreaves Lansdown said that taking knee-jerk reaction to Budget rumours tax-free cash puts savers "at risk of taking action" which they may come to regret. This includes moving money into a low interest account which may result in reduced purchasing power if left for too long.

Head of retirement analysis at Hargreaves Lansdown, Helen Morrissey, stated: "Rumours can be worrying but it’s important not to react in haste to something that may not even happen. This is money for your long-term future that needs to be planned for carefully, otherwise you could be left counting the cost. This could be due to missing out on investment growth, poor interest rates and tax charges that come out of nowhere.

"It’s important to highlight those who take their tax-free cash with the view that they could just reinvest it back into their SIPP should the change not happen. This is something that leaves them at risk of breaching pension recycling rules that could leave them with a sizeable tax charge that could potentially undermine their retirement planning."

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