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'Hidden dangers' of dipping into your pension – are you damaging your retirement?

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However, individuals may be able to take benefits without triggering the MPAA, for example, access only tax-free cash from drawdown, or take out a guaranteed lifetime annuity.

As the government’s furlough scheme comes to an end this month, Canada Life’s research also revealed that nearly half (46 percent) of currently furloughed workers have changed their retirement plans.

According to the survey, almost three in 10 (28 percent) of workers on furlough plan to retire later, while over one in six (18 percent) plan to retire earlier than previously planned. On the other hand, over one in three (36 percent) plan to retire at the same time as previously anticipated, and a further 18 percent are still undecided.

Those aged over-55 appear less worried about the impact of furlough on retirement plans than their younger counterparts. As a result of the pandemic and being on furlough, 53 percent of 18–34-year-olds said their retirement plans had changed, compared to 34 percent of those over-55s.