Allowing limited early access to pension pots could boost aggregate retirement savings by up to £400bn, a Pensions Policy Institute research report finds.
The research body's report - funded by B&CE Benefit Schemes and Legal & General - said allowing savers early access to their pension pots could increase participation and overall savings rates - but noted there would have to be a balance between making saving more attractive and discouraging "excessive access". The paper identified four basic types of scheme withdrawal including: "loans and withdrawals", based on the US 401(k) model where savers can take loans from their funds which they must then pay back with interest or, in cases of hardship, can make permanent withdrawals. "perman...
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