Overview
- Nikhil Rathi used the Resolution Foundation’s Unsung Britain conference in London to urge a public discussion on controlled early access to pension pots.
- He suggested an example of allowing people to withdraw £1,000 from their pension for an urgent expense to ease short-term pressure.
- Rathi also said the UK should consider whether a modest share of pension savings could be used toward a housing deposit.
- He cited Resolution Foundation findings that 60% of households in the lower half of the income distribution lack three months of income in savings, and that mortgage ownership in this group fell from about 30% in 1994–95 to 17% in 2023–24.
- He pointed to models in South Africa, Singapore, Turkey, the United States and New Zealand, while noting no UK rule changes have been made and current law generally bars access before 55 with a potential 55% tax on unauthorised withdrawals.