Pension cash can boost the economy.CONSUMERS should be allowed to tap into their pensions before they retire, an MP has declared.
Liberal Democrat Liberal Democrat
a member or supporter of the Liberal Democrats, a British centrist political party that advocates proportional representation
Liberal Democrat n (BRIT) → shadow work and pensions secretary Steve Webb
Steven John Webb, better known as Steve Webb, is a British politician, the Member of Parliament for Northavon and the Chair of the Liberal 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 Lump sum
A large one-time payment of money. 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.