Private pension funds could soon be accessible for Bermudians who are financially strapped.

Finance Minister Paula Cox announced that persons could have access to funds they vested into the National Pension Scheme, if they faced financial hardship.

The 2009 Labour Force Survey pegged unemployment at 4.5 percent and Minister Cox said that persons under this financial stress had requested access to their pensions.

She said the amounts withdrawn would be partial.

Further information would be available once the amendment tabled yesterday was debated in the House of Assembly, the Finance Minister said.

"There are no quick fixes however there is the opportunity to consider options for relief of hardship in prescribed and limited circumstances based on defined criteria," she said.

"The financial stress and strain placed on the shoulders on long-term unemployed persons is very often unbearable.

"Such persons are put at risk of losing their homes, being evicted from their apartments, and some others have had to suspend college and university education for their children."

She continued: "In their search for a solution, some unemployed persons have sought relief through access to their private sector pension funds.

"While they understand that the fund is for their retirement years, they have argued that they need the help now. The argument is compelling in the present economic conditions."

In 2002 the PLP Government announced the possibility of creating an unemployment insurance fund that could help those who lose their jobs.

A white paper was supposed to be issued the following year.

Yesterday Shadow Finance Minister Bob Richards said it was too late to help the unemployed with such a venture.

He said it had to be created while persons were still employed.

Allowing access to the funds would only address the problem in the short-term, he added.

"The question that arises there is the Government allowing people, if they are strapped for cash, to reach into their reserves but the Government doesn't have any reserves of its own?

"The problem of saving for retirement is still there. This just postpones the problem down the line. We allow people to take from that but they are pushing the problem further down the road.

"They won't have enough to retire with."

Peter Everson, chairman of the Chamber of Commerce's economic committee, said this was absolutely the wrong time to be making such a decision.

He said that the proposal might serve immediate financial gains but would prevent funds from growing into a larger nest egg for retirement.

He said: "It's bad economics and very poor public policy. By allowing people to access some of their personal fund now, not only will they have less, they won't have the investment income.

"It's the theme of this Budget and the last three Budgets. It's consuming more than raising. The cost of that falls on the Government.

"This is a poor Government policy being set up at the expense of saving a few dollars today."

Craig Cannonier the Leader of the Bermuda Democratic Alliance said he was also disappointed in the announcement.

"I recognise for the situation and the times we are living in this provides an option for many of us," he said. "I guess my concern with this whole thing, whilst it might provide relief on one end, in ten or 20 years where are we going to be?

"We need relief but it needs to be well-managed and I am afraid right now we are in the position because of mismanagement.

"We need to look for ways and means to provide that extra cash for people. It's not the ideal situation, but I am not against it because people need assistance.

"But if you make this decision today what happens tomorrow?"