Govt eyes £500 access to pension savings


Treasury officials are looking at allowing savers to withdraw £500 of their pension savings to fund access to financial advice.

The plans come as part of the Financial Advice Market Review, launched earlier this morning.

The review, jointly led by the Treasury and the FCA, proposed the change as a way to make  advice more affordable for those approaching retirement.

Plans will be finalised by the Government, but it is expected savers would access around £500 of their pension roughly five to 10 years ahead of retirement.

Savers would also be required to use the funds for advice, although processes to monitor this are yet to be developed.

It is hoped that by allowing consumers early access to their pensions, they will be given more time to save ahead of retirement, or to gain more accurate expectations of their retirement.