News that the government had decided not to go ahead with plans to allow pension release from as young as 30 came as no surprise to AXAs pension experts.
Head of pensions from AXAs wealth division, Mike Morrison revealed that research carried out by his firm had revealed just 1/3 of customers would have welcomed the move.
Morrison added that he believed education for the public on long term saving was more important than allowing them to withdraw money early, and pointed out that an ISA or other long term savings account could be more appropriate to those who need to access their money in an emergency.
Morrison went on to say, “The associated short-term benefits of allowing early access to pension pots were not seen to be strong enough to counter the longer-term potential pitfalls.”
The move to not allow pension customers access to pension release from the age of 30 was a decision that Morrison expected, given the reaction of their customers in the survey.
Morrison did add that they would continue to work with the government to find a new set of accounts which give customers improved flexibility when saving long term.