On 1 September last year, the government introduced a two-pot retirement scheme, whereby pensioners and those holding retirement funds would be allowed to access up to one-third of their assets invested for retirement prior to the official retirement age of 55. Many have regarded this as a lifeline to survival, while others fret that it will erode people’s ability to survive when they finally stop working.

Arguably, the introduction of the scheme has helped to lift retail sales somewhat; however, closer analysis suggests that the impact is likely to be relatively modest for the overall economy from a medium- to long-term perspective. Thus far, retirement funds accessed amount to less than 1% of GDP.