Pensions savings could be accessed early

Ministers have published a call-for-evidence document on the desirability of early access to pension savings, to discover if such a measure could provide an incentive to encourage higher levels of private pension investment.

Currently, individuals may only access savings in a registered pension scheme from age 55 (except in cases of serious ill health or other limited circumstances).

The Government document gives the available evidence on early access and whether it could provide an effective incentive for individuals to save more into a pension.

It also sets out some of the different models for how early access could potentially be offered, the potential benefits and risks of each, and seeks further evidence from interested parties.

The Government also asks for representations on two other areas concerning pensions tax rules: on the trivial commutation rules that determine when individuals with small pension funds can take their savings as a lump sum, and evidence on the barriers to transferring smaller pension pots.

The document Early Access to Pension Savings is available on the Treasury's website. Responses should be emailed no later than 25 February 2011.

Issue: 4286 / Categories: News , Investments