Contributing to a pension is the sensible way to proceed whilst you are earning money. Although our consumerist society urges spending and borrowing in order to keep up with the latest and greatest products and services we also need to think about tomorrow. It is your responsibility to put some money aside for yourself when you are no longer working, to either keep you going or to make luxuries a reality in your later years.

The increase of the average age in the UK has put an ever rising burden on the working population, meaning that there is no guarantee that the nation’s coffers can continue to provide for the retired population as it has done up until now.

Occupational schemes, also known as final salary schemes, pay people a generous pension based on length of service and salary. But the number of schemes is dwindling fast. Many companies are struggling to cope with the burden of final salary schemes because of crippling deficits, rising life expectancy and poor investment returns.

However there are many people of a pre retirement age who would like to access some of the funds from their Pensions sooner rather than later, enabling them to either provide a little money to their children or maybe pay off some debts ( an ever more likely reason ).

The process by which you release funds from your pension is often called pension unlocking as prior to this your pension funds were considered to be inaccessible and locked until retirement age. Government legislation has made it possible, now, to unlock funds from either occupational or personal pension schemes after the age of 50 ( though this figure is set to rise to 55 in 2010 ).

It may appear to be a rather hasty decision, and one which ironically has already beeen taken by those in charge: Gordon Brown has already been accused of having buoyed the UK economy by perpetrating a massive theft from the nation’s pension coffers whilst it is common knowledge that many large companies will be unable to meet their pension commitments in the near future.

So unlocking is certainly an option, it will mean, inevitably, that you will receive less income at retirement age than if you waited until the policy to mature. However, in this uncertain economic climate it may just as well to consider a bird in the hand to be worth just as much as two in the bush.

In order to unlock your pension it is advisable to speak to an FSA accredited adviser who will be able to explain to you the options available and at the same time mention the pro’s and con’s of unlocking your pension. It is necessary to be aware of all possible repurcussions when making an important financial decision.

In the face of the credit crunch and impending fiscal doom into which the earth in about to be plunged I would be swayed into the option of pension unlocking, had I contributed to a scheme; I have not. There are uncertain times ahead and I advise speaking to an advisor regarding pension unlocking and getting hold of as much money as you can as soon as you can.