The Association of Consulting Actuaries (ACA) has thrown support behind proposals to allow first-time buyers to use part of their pension pot as a deposit for a home.
The trade body revealed it welcomes debate sparked by housing secretary James Brokenshire's proposals to help future generations save in a flexible way to ensure they meet the increasing and competing savings needs for retirement and house purchases.
ACA said while it is concerned that adequate retirement provision must not be compromised by draining pots too early, a more flexible approach is preferable for younger generations to encourage greater and more efficient saving, provided there are "sufficient safeguards".
Chairwoman Jenny Condron commented: "Given that younger generations will both work and retire more flexibly than in the past, we believe those under age 55 should also be given some, limited flexibility in how they use their pension savings in a tax-efficient way."
This comes after the firm set up a younger members group within its membership of consulting actuaries, developing initiatives to consider possible pension and saving reforms for people early in their careers.
ACA younger members group chairman Thomas Dalton said that while a flexible savings approach could encourage people to save more and earlier, there are concerns this could "lead to worse retirement outcomes".
Yet, he added: "Young people already save towards a deposit on a house but often in inefficient ways. If those savings were paid into a flexible savings vehicle along with existing retirement savings, they could be used to fund a house deposit without reducing the amount available for retirement."
"There should be limits on the amount that can be withdrawn and should be mandatory additional contributions following a withdrawal to ensure it is replace," he continued.
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