Warning on early pensions access

27 February 2011 Last updated at 11:06 GMT It's thought that 7 million people don't save enough for their retirement Plans to let people take money out of their pensions in their 30s could increase dependency on the state, according to one industry group.

The National Association of Pension Funds (NAPF), which represents 1,200 schemes, says the proposals could leave people short of funds in retirement.

The government is keen to consider the idea of early access, to encourage more people to save for their pensions.

Ministers will examine the results of a consultation before making a decision.

'A huge upheaval'

At the moment only those who are older than 55 can access their savings with a company pension scheme. The government thinks people should be able to access them in their 30s.

The Chief Executive of the NAPF, Joanne Segars, warns that letting people dip into their pensions would be "a huge upheaval for pensions funds, for really very little benefit."

"There is little evidence to show that giving people early access would either increase the amount people save, or get them saving in the first place", she says. "We think this could be very, very confusing for individuals."

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People feel... that by putting money into a pension that money is confiscated from them, because they can't get it back until they are in their 50s”

End Quote Dr Ros Altmann Saga group The Association thinks that taking out a small amount could leave a large hole in final pensions, leaving people reliant on the state. It also warns that more complex administration could drive up the cost of having a pension.

The government says it is committed to encouraging saving, and wants to give individuals the maximum flexibility and responsibility to save for retirement.

In a statement it said: "Early access is an idea the government is keen to consider. An informal consultation closed on Friday and the government will now make a decision on whether to develop more detailed proposals in the light of the responses received."

The Director General of the Saga group, Dr Ros Altmann, thinks the proposed change is an "absolutely excellent idea".

"The problem we have at the moment is people feel, certainly if you are in your 20s and 30s, that by putting money into a pension that money is confiscated from them, because they can't get it back until they are in their 50s."

She said: "There are lots of people at the moment who have got tens of thousands of pounds in a pension fund who are having their houses repossessed, because they can't get the money."

The Department for Work and Pensions estimates that around 7 million working age people are currently not saving enough for their retirement.

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Warning for Mexican Open players

21 February 2011 Last updated at 04:57 GMT At least 12 people are said to have been killed in attacks in the city this weekend Tennis players have been warned about security ahead of the start of the Mexican Open in the troubled Pacific resort of Acapulco.

The professional men's tennis association, the ATP, cautioned against travelling outside hotels.

Players were advised to leave the city immediately after being eliminated from the tournament.

Mexico's government has assured the ATP that appropriate security measures have been put in place.

Several arrests have been made following a recent spate of drug-related violence in the city.

A weekend of attacks on taxis in the city left 12 drivers or passengers dead, the Associated Press news agency quotes local police as saying.

Dozens of cars have also been burned in recent days but the motives were not clear, AP reported.

In January, the bodies of 15 headless men were found outside a shopping centre in the resort.

'A bit scared'

Among the players attending the six-day tournament, which opens on Monday, are the defending men's champion, David Ferrer of Spain, who said he had no fears about being there.

But David Nalbandian of Argentina said on Saturday he was thinking about withdrawing, adding that he also had a groin injury.

"It's a great and enjoyable tournament to play," he said.

"But for right now it's a little more difficult because of the security situation. We [players] are a bit scared about this and we're trying to decide what to do."

More than 34,000 people have been killed in drug-related violence in Mexico since late 2006.

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