AXA warns on early access to pensions

The Treasury launched a consultation last week on allowing early access to the 25% tax free lump sum, in a bid to encourage pension saving amongst people intimidated by locking their money away. It will assess four methods of allowing early access: loans from pension funds, feeder funds, permanent withdrawals or simple early access. However, Morrison argues in the US where early access is permitted in some places the effects have been negative. He says: "In the US there are current issues with the large number of loans which have been taken from 401k plans and never repaid, with th...