Why can’t I access money that I have earn’t before the age 55. For instance I’m 30 and I have a pension from an old job that is not my main pension. It has 1k in it, I could do with the money now but everywhere I look it says you can’t access it till your 55? It’s my money I don’t understand how they can keep it from me unless I pay some ridiculous early withdrawal tax of 50%?
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Most people suck at saving money for retirement.
The government knows this, so it made laws allowing certain kinds of savings *for retirement* to be taxed differently (i.e. lower tax rates) than other kinds of savings in order to incentivize more people to properly save for retirement.
You can’t *”have your money now without some ridiculous early withdrawal penalty”* because you can’t have your cake and eat it too; either the money is an actual retirement savings that gets the lower taxes but comes with those strings attached, or it is regular savings with no strings attached that gets the higher tax rate.
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