Pension withdrawals before retirement will cause administrative headache, says think-tank

UK workers must not be able to draw on pension savings before hitting the retirement age because of the administrative headache it will cause, the Social Market Foundation (SMF) has said.

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The think-tank added that any change to allow early access would impose huge public and private sector costs for the UK, and politicians should leave the current regime alone.

Instead, the SMF recommended that the government focus on encouraging employees to use flexible savings and ISAs to build up savings to call upon in emergency situations, such as redundancy.