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Britons could be allowed to access their pension savings at any age under a radical new plan from the Labour Government, which is set to be announced by ministers next week, according to analysts
Labour is preparing to unveil a major shake-up to the pension system as part of a slew of policy changes aimed at tackling retirement poverty and the soaring cost of the state pension.
As part of the rumoured reforms, workers could able be able to dip into their retirement savings if they run into any financial trouble, The Telegraph reports. If implemented, this policy will allow pension savers to access £1,000 many years before reaching retirement.
Currently, Britons are only be able to access their pension cash from the age of 55, a threshold which is set to jump to 58 in 2028. It should be noted that rules are different if someone is terminally ill or had worked in one of a few limited set of professional roles, such as full-time athlete.
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Workers will be allowed to access their pension savings at any age under rumoured Government plans
Pete Glancy, the head of pensions at Scottish Widows, and Mike Ambery, the retirement and savings director at Standard Life, shared that the plans may include the launch of emergency savings pots within pensions that people could access before finally retiring.
Glancy told The Telegraph: “We expect the second half of the pensions review to shortly be announced by the Government, and I think there’ll be a discussion on ‘Should we be helping people build up a rainy day savings pot alongside the retirement pot?’
“You’d be able to access the savings at any point. The idea is that if the pot gets above £1,000 because you haven’t needed to access it, it’ll tip over into the pension.
“We are supportive of that idea as it will keep many people out of the hands of unscrupulous lenders, and if the money isn’t ever needed for a rainy day, then it means a slightly bigger pension pot at retirement.”
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Pension ministers are expected to announce radical reforms to the pension system
GB News has contacted the DWP for comment.
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