IFAs warning on early access to pensions

by Richard Kilner

Story link: IFAs warning on early access to pensions

Early access to pension money is not without risks, according to new research commissioned by AXA Wealth.

The research found that 62% of IFAs believe that earlier access would lead to clients running out of money and becoming dependent upon the state.

As life expectancy continues to increase the issue of retirement and the money available has likewise risen in importance.

Despite this finding, however, 55% of IFAs believed that allowing early access to pensions was a good idea, citing loan repayments, care costs and education costs as the prime grounds for doing so.

If people were aware they might be able to access their pension money early, 40% of IFAs believe they would save more, with 33% of savers stating they would put more money aside for retirement.

Mike Morrison, head of pension development AXA Wealth, has said that the research emphasises the importance of saving for retirement, particularly given the possibility of economic volatility.

That sentiment was echoed today by a new report from Chatham House which found that there was a mismatch between savings behaviour and future expectations of retirement.