The National Association of Pension Funds (NAPF) backed the Government’s announcement today (Tues) on not giving people early access to their pensions.
Darren Philp, NAPF Director of Policy, said:
“Letting people dip into their pensions early would not have increased their retirement income. Instead it would have risked greater dependency on the state, and left pension providers in a bureaucratic tangle.
“The Government has concluded that there is a lack of evidence that early access would increase pension saving. Our view is that it’s sensible to put the option to one side. The 2012 auto-enrolment reforms need to be implemented and bedded in before further major changes to the pensions landscape are considered.
“The UK is facing a worsening crisis when it comes to saving enough for its retirement. Although early access wasn’t a solution, we’re pleased that the Government wants to explore other ideas to make pensions more flexible. Simplifying pensions tax, especially for people with small pension pots, sounds very helpful.”
Notes to editors:
1. Darren Philp is available for interview. The NAPF has an in-house ISDN line.
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
3. The NAPF’s views on early access can be read here.
4. More information on the Government’s response can be found at here.
Paul Platt, Head of Media & PR, NAPF, 020 7601 1717 or 07917506683, [email protected]