Pension experts have broadly welcomed Treasury plans to consult on allowing access to 25% of pension savings tax free before retirement but warn the new rules must be kept as simple as possible.
Under current rules, savers only can take 25% of their pension as a tax free lump sum on retirement. Adrian Boulding, pensions strategy director at Legal & General, told IFAOnline.co.uk there are rumours the Treasury will announce a consultation on earlier access before the end of the year. "It is a whisper I have heard on the wind at this stage, but it is a consultation we would welcome," Boulding says. "In the USA where early access is allowed, you get higher take-up of pension schemes and higher contributions, which offsets the amount lost via early access. "It would be great...
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