Early access to pensions off the agenda - Pensions - News - Moneyfacts

News

Early access to pensions off the agenda

Early access to pensions off the agenda

Category: Pensions

Updated: 19/04/2011
First Published: 19/04/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Pension savers will not be allowed to access their pensions early after the Government said there was limited evidence the move would increase contribution levels.

Having listened to the opinions of those within the pension industry, the Government reached the conclusion that early access to pension savings should not be considered at the present time.

Those who advocate allowing early access to pension money suggest it would encourage people to save more, safe in the knowledge they could lay their hands on the funds of needs be.

However, the Government said the evidence does not exist to support allowing such a move.

The Government added that it wanted to implement the extensive private pension reforms already planned, most notably automatic enrolment from 2012, before it considers further reform.

Recent research from AXA Wealth found that only a third of consumers wanted to access their pension pot early, with a third saying it would encourage them to increase their current retirement savings.

"Consequently, HM Treasury's decision appears to be in line with consumer sentiment," said the firm's head of pensions Mike Morrison.

"However, there is still an overwhelming need for the industry to educate consumers more and ensure they have a range of savings vehicles in their portfolios that allow them to save for the long-term but also have access to money for emergency situations."

Find the best pension for you -Compare pensions.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savers more worried about looks than pension

When you think of getting older, what’s the first thing that comes to mind? For many, it’ll be fears about their looks – but they should really be concerned about their financial situation.

Pension funds defy uncertainty with strong returns

Economic uncertainty has been a persistent theme in recent months, but happily, not every area has been negatively impacted. Indeed, our latest figures show that the pension sector has bucked the trend and posted unexpectedly strong returns.

Do you know what a pension is?

Pensions are something we all need to get our heads round, and we’re continually told that it’s important to start saving into one from as early as possible. Yet new research suggests that this advice could be falling on deaf ears.
 
Close