Concern has been raised in the finance industry about the numbers of people who are turning to their pension fund to unlock cash in times or difficulty.
Many people find themselves in difficulty following redundancy, sickness or divorce and the numbers of people over the age of 50 turning to their pension fund is growing.
Our view
Using pension benefits, such as getting hold of the tax free cash early, is a difficult thing.
Yes, of course, it affects peoples long term income and can reduce pension income in the longer term meaning that difficulties may be faced in retirement.
However, it is easy for those who are earning, or who do not have financial difficulties, to comment on those that are.
All that we say is that people should be aware of the risks, be aware that certain actions will reduce income in the future, and then make a decision.With this in mind, we have written a free fact sheet called Unlocking cash from your pension.
Visit the Pensions Adviser.com for more on the same.