Pension cash can boost the economy.
Liberal Democrat shadow work and pensions secretary Steve Webb said people should be able to draw tax-free lump sums from their pensions to help them clear mortgage arrears or make a large purchase, such as a car.
He said the move could help stimulate the economy and rescue the housing market at very little cost to the taxpayer. In a report for the thinktank CentreForum, he said people should be able to withdraw any lump sum they had built up - to a limit of pounds 10,000.
He added that pension schemes could charge a fee for the withdrawals, and limit them to one per member per year.
Mr Webb said that as four-fifths of people already take a tax-free lump sum when they retire, giving them early access to the money wouldn't have a major effect on pension income.
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|Publication:||Daily Record (Glasgow, Scotland)|
|Date:||Jul 9, 2009|
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