Coalition to explore early access to pensions
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The coalition has vowed to explore allowing early access to pension savings in a bid to boost the appeal of pensions.
In the Conservative-Liberal Democrat coalition’s ’Programme for Government’ document published today, the parties say: “We will explore the potential to give people greater flexibility in accessing part of their personal pension fund early.”
The Government has also committed to simplifying pension rules to help “reinvigorate” good quality workplace pension schemes and has supported auto-enrolment.
The document states: “We will simplify the rules and regulations relating to pensions to help reinvigorate occupational pensions, encouraging
companies to offer high-quality pensions to all employees, and we will work with business and the industry to support auto enrolment.”
The more detailed agreement fails to mention whether higher rate tax relief on pension contributions will be axed, as called for by the Liberal Democrats, or the future of the National Employment Savings Trust, which both parties pledged to review before the election.
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Readers' comments (3)
sippguru | 20 May 2010 10:57 am
So 'A' day mark II. Intriguing to see how flexibility to access pension early will work if we are to avoid people exhausting their pension saving before retirement. Perhaps a 401K model is being considered? Whatever happens, true simplification would be so very welcome!
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Robert Donaldson | 20 May 2010 1:32 pm
Thats just what you want, people who have binged on spending and credit cards being given early access to their pensions so they can spend that.
We need to encourage long term saving not short termism.
God help the future generations when it comes to retirement!
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Martyn Sinclair | 20 May 2010 6:44 pm
the one finance act increases the age at which pensions can be accessed from age 50 to 55 and then the new Governement seek to reduce the age for access to pension pots. Incredible really why we vote these idiots in.............
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