The government has no right to penalize us for withdrawing money from our own pension. Especially with the economy as it is, and people losing their jobs, they need every cent they can get sometimes.
The excuse that it's supposed to encourage people not to withdraw their pension early, is completely moronic. The government has no right to our hard earned money, and if they want to encourage saving for retirement it should be done in a way to encourage, not discourage. Perhaps a tax incentive for saving?
I know some folks that have had to take some of their pension out to get by. If you count taxes and the 10% penalty, you end up giving the government 40% to keep from paying extra at the end of the year. This is completely ridiculous!