Eli5 why can’t you access Pensions before 55?

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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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Anonymous 0 Comments

The company managing your pension make their money by having access to your money for a gaurenteed 40+ years on long investments etc. so when you pull out early; they have to pull out in their investments early. They are just passing the cost down the chain.

When you withdraw; hypothetically someone up the chain loses money they needed (from an investment), obviously you as an individual aren’t gonna collapse the economy but that’s why the fee exists

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