Early access to pensions may be looked at again

Steve Webb, the Liberal Democrat pensions minister has said that if auto enrolment fails in 2017 the government of the day may look again at allowing people to have early access to their pensions. Auto enrolment will start next year and conclude in 2017, it will see all employers having to enrol most of their workforce into a pension. Both employers and employees will have to make monthly payments. However there will be an option to opt out, and it is feared that many workers will decide to do just that, especially in these tough economic times, prices rising and low ...

Government says no to early pensions access

After a period of consultation the government has decided not to allow people early access to their pension funds. Currently you have to be at least 55 to access your pension, however some believe that if this age was to be reduced it would encourage saving into pensions, this view has been rejected by the government. Financial secretary to the Treasury Mark Hoban said: 'While early access has some merits, there is insufficient evidence to suggest it would act as an incentive to save more into pensions.' The government also believe that introducing early access would push up costs; Mr Hoban went on ...

Early pension access may encourage savings

Flexible access to pensions could result in higher retirement savings in the long run. Any scheme which allows people to dip into their pension savings should not be too complex for savers to understand. Early access to pension savings could benefit savers and encourage them to put more cash away for their future, according to online insurance firm LV=. The firm put forward its view to the Treasury earlier this year, supporting proposals to allow people to get hold of their saved pension capital before they hit the age of retirement.

Early pensions access could leave workers short of retirement funds

Workers might be able to access their pension savings before the age of 55 under new government proposals. The government may reduce the age at which people can take out money from their company pensions to encourage them to save more. Plans that allow workers to access their pension funds in their 30s could leave them short of retirement funds for their future, according to pensions group. The National Association of Pension Funds (NAPF) said that giving people the chance to take their money out early may leave more people dependent on state funding when they stop work.