The British Association of Pension Funds (NAPF) said that allowing early access to workplace pension pots would damage overall retirement savings, undermining the Government’s drive to auto-enrol workers into a pension.
The UK’s leading pensions body said the extra flexibility of early access would only encourage a minority to save more into a pension, while a seemingly small withdrawal could cause a heavy fall in the final value of a pension.
Such losses would leave even more people dependent on a low and complicated state pension system that is in urgent need of reform, the NAPF said in its response to a Government call for thoughts on early access.
Plansponsor / Press release NAPF