Early access to pensions under fire
As research by HSBC shows that only 39 percent of UK residents have a plan for their retirement, the government has decided to reject proposals which would have enabled individuals to access their pensions from the age of 30.
Although the measure was intended to encourage people to save more for their future, it was decided that the evidence for it achieving this goal was “limited”. Consequently, the government is set to consider other methods of helping individuals take responsibility for their retirement.
Another way of accessing pension funds before the age of 55 has also faced criticism – this time from the FSA. The regulator is set to review the providers of pension loans, which enable individuals to borrow up to half the value of their pension and repay this from the lump sum received on retirement.
These are not recognised financial products in the UK, and firms offering such services are not authorised or regulated by the FSA.
