Pensions - my views upon capital release - the disaster plan

Basically what we seem to have is the idea of spending your pension capital..
In my view the process is ridiculous - in that many people may end up having to draw state pensions..
Based upon the idea of drawing out your money - before it becomes a pension..

so what are some of the drawbacks ?

people may not have a pension..
the government pension scheme may be over run with poor folks that had otherwise a pension over the stat minimum..
Tax : the withdrawn monies are liable for tax after the first 25%


the government may be able to cash in your pension to pay for your care... :-(

positives :

Bankers and executives will be able to cash in on massive pensions : yay more money.
There are alternatives - like mortgage reduction (before the government reposes your home while in an old folks home..

***

yes there are some reasons you can cash in part of your annuity - however there are massive pitfalls and those are not to be understated.


http://www.theguardian.com/money/2014/oct/18/osborne-new-pension-options-tax-implications

http://www.theguardian.com/money/2015/apr/06/pensions-minister-warns-against-savings-pot-spending-sprees

http://www.telegraph.co.uk/finance/personalfinance/pensions/